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Morning Research Notes - 09.09.24
U.S. stocks experienced a significant decline on Friday as non-farm payroll data fueled investor concerns over the labour market. Major sectors and technology stocks took notable hits, contributing to overall market decline. Commodities experienced declines on Friday: Spot gold decreased by 0.8% to $2,497.41 per ounce, Brent crude fell by 1.6% to $71.53 a barrel and iron ore increased by 1.3% to $92.20 a tonne.
On Friday, US stocks experienced a significant decline as August payroll data was reported. The S&P 500 fell by 1.73%, the Nasdaq dropped by 2.55% and the Dow Jones Industrial Average decreased by 1.01%. This downturn was driven by labour market concerns, with August's non-farm payroll data reporting weaker than expected. Non-farm payrolls grew by 142,000 in August, lower than economists' forecasts of 165,000. This fueled concerns that the window for a so-called "soft landing" in the US may be closing, with the labour market weakening faster than the Fed and many economists had anticipated. Major technology stocks, including Nvidia, Tesla, and Alphabet, saw notable losses, contributing to the overall market decline.
The Australian markets ended the week on a positive note, with the ASX 200 rising by 0.39% on Friday. Most indices also closed higher, with Financials, Health Care, and Utilities posting gains of 1.45%, 0.30%, and 0.40%, respectively. However, Materials and Info Tech saw losses of 0.86% and 0.35%. Commodities broke their bearish streak, with Aluminium, Copper, Zinc, and Nickel all recording gains of 0.08%, 1.10%, 1.00%, and 0.38%.
Chart of the day
Gold remains a cornerstone of defensive investment strategies, especially during periods of market volatility. Its unique properties make it relatively uncorrelated to other assets, providing diversification benefits that can stabilise a portfolio. Gold often shines during economic uncertainty, acting as a hedge against inflation and currency fluctuations. Investors can gain gold exposure through exchange-traded funds (ETFs), such as the Global X Physical Gold (ASX: GOLD), which offers liquidity and the need for physical storage that bullion requires.
Source: Livewire
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