Markets Overview

  • ASX SPI 200 futures little changed at 7,605.00
  • Dow Average up 0.2% to 39,131.53
  • Aussie up 0.1% to 0.6564 per US$
  • U.S. 10-year yield fell 7.4bps to 4.2480%
  • Australia 3-year bond yield rose 4.9 bps to 3.79%
  • Australia 10-year bond yield rose 4 bps to 4.20%
  • Gold spot up 0.5% to $2,035.40
  • Brent futures down 2.5% to $81.62/bbl

Economic Events

Stocks struggled to gain traction, with big tech losing steam after a powerful rally driven by the artificial-intelligence euphoria.

A feat of multiple records in the world’s biggest equity market drove the S&P 500 briefly above 5,100. The “Magnificent Seven” group of megacaps underperformed, though Nvidia Corp. saw a modest gain and its value hovered near $2 trillion.

A rally in AI and optimism about economic growth at a time of easing monetary policy are the ingredients of a “magic sauce” to drive more gains in equities, according to Bank of America Corp.’s Michael Hartnett. The strategist — who has taken a more neutral tone on stocks this year after remaining bearish through 2023 — said that a “baby bubble” in AI was “growing up.

The S&P 500 barely budged Friday, while posting a weekly win. Treasury 10-year yields fell seven basis points to 4.25%. Federal Reserve Bank of New York President John Williams said the economy is headed in the right direction, and it will likely be appropriate to cut rates later this year.

Other News

Australia will study proposals aimed at increasing the number of adults with university or vocational qualifications, including creating a A$10 billion fund for education infrastructure.

A government-convened panel, including Macquarie Group Ltd. Chief Executive Officer Shemara Wikramanayake, recommended that by 2050 the percentage of the nation’s working age population with tertiary education — such as bachelor degrees or job-related diplomas — should rise to at least 80% from the current level of 60%.

“We need to plan for the jobs of the future, and that means giving people the skills and knowledge that they need,” Prime Minister Anthony Albanese told Nine Network television Sunday.

Among the 47 proposed reforms is the panel’s recommendation that a Higher Education Future Fund be created to invest in infrastructure and student housing. The fund should include contributions from universities and the government with the aim of reaching A$10 billion in assets, according to a report published Sunday.

Improvements will support a higher eduction sector that had enrollments from more than 450,000 fee-paying international students in 2022, and counts as Australia’s fourth-largest export sector, the report said.

Albanese’s government will study the panel’s findings, Education Minister Jason Clare said Sunday in a statement.