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Wall Street Rallies Amid Election Uncertainty

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 - 06.11.24

 

US markets closed higher yesterday, with significant gains led by the tech sector, as investors navigated election uncertainties and anticipated a Federal Reserve rate cut. Major commodities had a bullish day: Spot gold increased by 0.1% to $US2739.89 per ounce, Brent crude rose by 0.4% to $US75.39 per barrel, while iron ore climbed by 2% to $US105.95 per tonne.

On Tuesday, Wall Street saw significant gains, with the S&P 500 rising by 1.2%, the Dow Jones Industrial Average climbing 427 points (1%), and the NASDAQ Composite gaining 1.4%. The rally was driven by a strong performance in the tech sector. Investors were closely watching the tight presidential race between Donald Trump and Kamala Harris, which could influence future trade and tax policies. Additionally, anticipation of a Federal Reserve rate cut on Thursday added to market activity. Notable stock movements included a 23% surge in Palantir Technologies following strong earnings, while Boeing fell 2.6% after resolving a machinist strike, and Dollar Tree dipped slightly after announcing its CEO’s resignation.

On Tuesday, the Australian stock market closed lower, with the ASX 200 falling by 0.4%. This downward trend was evident across major indices, with the Materials, Financials, Info Tech, Health Care, and Utilities sectors recording losses of 0.17% 0.62%, 0.39%, 0.56%, and 0.71%, respectively. Major commodities had a mixed day: Copper ended in the green, rising by 0.85%, while Copper, Aluminium, and Zinc fell by 1.24%, 1.09%, and 0.82%, respectively.

 

Chart of the day

 

The global beauty industry has been a standout performer, significantly outpacing broader market growth in 2023. Retail sales surged to $446 billion, marking a 10% increase from 2022, driven primarily by price increases rather than volume gains. The Asia-Pacific region, excluding China and Australia, led this growth, with India also showing remarkable progress. Despite facing economic challenges, the beauty industry is projected to continue its upward trajectory, potentially reaching $590 billion by 2028.  

 

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​​Source: McKinsey & Company




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