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US markets surge on Fed rate cut

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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Image Source: Adobe Stock

 

Morning Research Notes - 08.11.24

 

Yesterday, Wall Street experienced significant gains, with the S&P 500 and Nasdaq reaching record highs, driven by the Federal Reserve’s rate cut. Major commodities faced headwinds: Spot gold decreased by 2.8% to $US2666.16 per ounce, Brent crude fell by 0.5% to $US75.12 per barrel and iron ore dropped by 2.1% to $US103.20 per tonne.

On Thursday, Wall Street saw significant gains with the S&P 500 closing at a record high of 5,973.10, up 0.8%. The Nasdaq also reached a new high, adding 1.5%, while the Dow Jones Industrial Average remained flat. This rally followed the Federal Reserve’s widely anticipated 25 basis point rate cut, bringing the benchmark rate to a range of 4.5% to 4.75%. Notable stock movements included Lyft surging 24% on strong guidance, Warner Bros Discovery rising over 12% on a surprise profit and Qualcomm giving up gains despite positive earnings and a $15B buyback announcement.

On Thursday, the Australian stock market closed higher, with the ASX 200 gaining 0.33%. This upward trend was evident across major indices, with the Materials, Financials, and Info Tech sectors recording gains of 0.42%, 0.78%, and 0.75%, respectively. However, the Health Care and Utilities sectors recorded losses of 0.27% and 0.64%. In contrast, major commodities had a bearish day: Aluminium, Copper, Zinc, and Nickel fell by 2.15%, 3.52%, 3.19%, and 2.19%, respectively.

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Chart of the day

 

With Trump having won the election, assets like Bitcoin, stocks and the US dollar have gained, while oil and treasury notes have declined. These trends may continue in the short term, but long-term movements will be driven by broader economic conditions. For instance, if the economy weakens, bond prices and gold could rise regardless of the incoming Trump administration.  

 

Picture_2__2_-Nov-08-2024-12-23-34-5343-AM
​​Source: ​​Moneyshow




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