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Morning Research Notes - 28.10.24
Wall Street saw the Nasdaq finish higher on Friday, driven by gains in major tech shares, as investors anticipated crucial quarterly results from leading companies. Meanwhile, gold rose 0.8% to $US2,736.79 an ounce. Iron ore gained 0.7%, closing at $US99.40 a tonne. In contrast, Brent oil slipped 0.6% to $US74.52 a barrel.
On Friday, the Nasdaq finished higher, boosted by gains in major tech shares like Tesla, Amazon, Apple, and Microsoft, as investors looked forward to key quarterly results. Tesla’s shares climbed 3.36% after a 22% surge due to an upbeat sales forecast, reigniting optimism in tech stocks. Nvidia briefly surpassed Apple as the world’s most valuable company. Meanwhile, the Dow Jones dropped 259.96 points, affected by declines in banking shares and McDonald’s amid an E. coli outbreak. The S&P 500 saw a slight dip. Investors remain cautious ahead of the U.S. presidential election and upcoming economic data, with the Nasdaq being the only major index to close the week with gains.
The Australian stock market closed Friday with gains, as the ASX 200 rose by 0.06%. This positive trend was reflected across major indices, with the Materials, Financials, Info Tech, Healthcare, and Utilities sectors recording increases of 0.04%, 0.21%, 3.24%, 0.53%, and 0.09%, respectively. However, major commodities ended the day in the red, with Aluminium, Copper, Zinc, and Nickel falling by 1.61%, 0.3%, 4.93%, and 0.72%, respectively.
Chart of the day
As central banks like the Federal Reserve start cutting interest rates, some worry this might be premature or too aggressive, arguing that rates should stay high until inflation is fully controlled. However, evidence suggests that higher interest rates don’t necessarily correlate with lower inflation and may even have the opposite effect. High interest rates benefit wealthy net cash holders and, while high labour costs are often blamed for inflation, high capital costs should theoretically have the same impact. Therefore, falling interest rates shouldn’t be seen as a trigger for inflation to rise again.
Source: Livewire
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