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Wall Street falls on rising treasury yields​​​​

ASR Team

Self-directed investors have relied on Australian Stock Report for over 20 years to provide them with comments on the Australian stock market and useful insights. We provide Australian investors with market news and research to make decisions that would help manage their savings, build a sustainable income, and potentially achieve capital growth.

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Morning Research Notes - 18.11.24

 

Wall Street experienced notable declines on Friday as stronger-than-expected retail sales and rising import prices reduced expectations for Federal Reserve rate cuts. Major commodities had a mixed day: Spot gold fell 0.1% to $US2,561.52 per ounce, while iron ore dropped 1% to $US97.30 per tonne and Brent crude declined 2.1% to $US71.07 per barrel.

On Friday, the S&P 500, Dow Jones, and NASDAQ all fell as economic data showing stronger-than-expected retail sales and rising import prices dampened hopes for Federal Reserve rate cuts. The Dow dropped 305 points, the S&P 500 fell 1.4%, and the NASDAQ slipped 2.3%. Treasury yields climbed, reflecting reduced rate-cut expectations. Applied Materials and Alibaba saw significant declines, while Pool Corporation gained on news of a Berkshire Hathaway stake. Palantir’s shares rose after announcing a move to the Nasdaq Global Select Market. Meanwhile, President-elect Donald Trump is considering Larry Kudlow for the National Economic Council.

On Friday, the Australian stock market closed higher, with the ASX 200 rising by 0.74%. This positive momentum was reflected across major sectors, as Materials, Financials, Information Technology, and Utilities saw gains of 0.45%, 1.46%, 0.94%, and 2.39%, respectively. In contrast, the Healthcare sector ended the day in the red, falling by 1.76%. Major commodities also had a bullish session, with Aluminium, Copper, Zinc, and Nickel rising by 5.05%, 3.27%, 3.55%, and 1.08%, respectively.

 

Chart of the day

 

Mr Trump’s second term also offers much uncertainty in the geopolitical sphere. The Europe Elect Poll demonstrated a broad Western European preference for Kamala Harris to win, compared with more clear support for the President-elect in Russia, Serbia, Georgia, Hungary and Bulgaria. Despite President Trump having presided over record sanctions on Russia during his first term, his campaign promise of a swift end to the Russia-Ukraine War and his lukewarm support for NATO may prove renewed sticking points for a multilateral approach to international foreign policy.

 

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​​Source: ​​London Stock Exchange Group




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