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Tech rally drives Wall Street

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 - 09.10.24

 

Wall Street surged on Tuesday as the third-quarter earnings season began, with tech stocks like Nvidia leading the gains, boosting the broader market. Commodities had a disappointing day: Spot gold dropped by 1.1% to $2,614.56 per ounce. Brent crude fell 3.5% to $78.09 per barrel, breaking its winning streak, while iron ore prices declined 5.1% to $105.15 per tonne.

Wall Street closed higher yesterday as the third-quarter earnings season began. The S&P 500 rose 1%, driven by gains in tech stocks, with Nvidia leading the rally following optimistic comments from Foxconn about strong demand for Nvidia’s upcoming chips. The Dow Jones Industrial Average increased by 126 points (or 0.3%), while the NASDAQ Composite gained 1.4%. Alphabet saw modest gains despite legal challenges involving changes to its Android platform. Meanwhile, DocuSign surged more than 6% on news of its inclusion in the S&P 500 MidCap 400 index. On the earnings front, PepsiCo reported better-than-expected earnings but missed revenue estimates, while Honeywell gained following reports of a planned spinoff of its Advanced Materials division. Conversely, Roblox fell over 2% after a critical report from Hindenburg Research.

On Tuesday, the Australian stock market saw mixed results, with the ASX 200 slipping 0.35%. Gains were observed in key sectors, with Financials, Health Care, and Utilities rising 0.14%, 0.75%, and 0.29% respectively. In contrast, the Materials and Information Technology sectors experienced declines of 1.74% and 1.06%. Major commodities performed well, as Aluminium, Copper, Zinc, and Nickel each posted gains of 0.6%, 0.33%, 0.32%, and 1.56% respectively.

 

Chart of the day

 

Australia’s quarterly GDP growth has experienced fluctuations over the years, with public and private demand playing significant roles in driving economic activity. The contributions from these components have generally been stable, while changes in inventories and net trade have shown more variability. Net trade, in particular, has seen notable shifts, reflecting external economic pressures. Public demand has remained a steady contributor to growth, while private demand has shown periods of volatility, especially during major financial events. Overall, the economy’s performance appears to have stabilised post-2020, with GDP growth maintaining modest positive contributions from most components.

 

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​​Source: The Guardian


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