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Wall Street slips on Nonfarm Payroll report

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 - 08.10.24

 

Wall Street fell on Monday as September's strong non-farm payrolls report pushed treasury yields higher, reducing hopes of a 50 basis point cut by the Fed in November. Commodities had a mixed day: Spot gold fell by 0.3% to $2,644.7 per ounce, while Brent crude surged 3.6% to $80.84 per barrel, continuing its winning streak due to rising tensions in the Middle East. Iron ore prices also increased by 2.9%, reaching $111.75 per tonne. 

On Monday, the S&P 500, Dow Jones and Nasdaq all dropped as treasury yields rose following a stronger-than-expected September nonfarm payroll report, which dampened hopes of a significant rate cut in November. The 10-year treasury yield climbed above 4%, the highest since August. Federal Reserve officials, including Neel Kashkari, welcomed the robust jobs data, emphasising the labour market's strength. The Fed’s September meeting minutes, due Wednesday, may offer more insights into future rate cuts. Meanwhile, the third-quarter earnings season kicks off this week with major banks reporting. In corporate news, Alphabet fell over 2% due to an antitrust ruling, Pfizer rose 2.2% on activist investor interest and Hershey dropped 2% following a UBS downgrade.

On Monday, the Australian stock market recorded gains, with the ASX 200 rising by 1.97%. The trend was evident across major indices, as Materials, Financials, Info Tech, Health Care, and Utilities all posted positive gains of 4.58%, 1.01%, 1.3%, 0.88%, and 1.83%, respectively. Yesterday, commodities showed a mixed performance: Aluminium and Zinc recorded gains of 0.61% and 0.3%, respectively, while Copper and Nickel experienced declines of 0.02% and 1.79%.

 

Chart of the day

 

Gold has experienced an impressive rally this year, reaching all-time highs. Robust physical market demand, including purchases by central banks and retail buyers in Asia, has contributed to this sustained rally. Additionally, gold’s historical track record as a store of wealth remains unmatched, making it an attractive asset during economic uncertainties and geopolitical tensions. 

 

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​​Source: Livewire


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