Markets Overview

  • ASX SPI 200 futures down 0.2% to 8,193.00
  • Dow Average down 0.2% to 42,161.05
  • Aussie up 0.2% to 0.6576 per US$
  • US 10-year yield rose 2.8bps to 4.2823%
  • Australia 3-year bond yield rose 1.8 bps to 3.97%
  • Australia 10-year bond yield rose 1.9 bps to 4.47%
  • Gold spot up 0.4% to $2,787.20
  • Brent futures up 2.4% to $72.83/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 133-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 91-Day Bills
  • 11:30: (AU) Sept. Private Sector Credit YoY, prior 5.7%
  • 11:30: (AU) Sept. Private Sector Credit MoM, est. 0.5%, prior 0.5%
  • 11:30: (AU) 3Q Import Price Index QoQ, est. -0.3%, prior 1.0%
  • 11:30: (AU) 3Q Export Price Index QoQ, est. -4.0%, prior -5.9%
  • 11:30: (AU) 3Q Retail Sales Ex Inflation QoQ, est. 0.5%, prior -0.3%
  • 11:30: (AU) Sept. Private Sector Houses MoM, prior 0.5%
  • 11:30: (AU) Sept. Building Approvals MoM, est. 2.1%, prior -6.1%
  • 11:30: (AU) Sept. Retail Sales MoM, est. 0.3%, prior 0.7%

A rout in chipmakers dragged down stocks, with traders also sifting through corporate results and economic data. In late hours, Meta Platforms Inc. slid while Microsoft Corp. climbed after earnings.

A $300 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) extended losses after the close of regular trading as Meta’s spending guidance failed to enthuse investors. That’s even after a sales beat. Microsoft rose as its cloud-computing business and Office software fueled stronger-than-projected quarterly revenue growth. EBay Inc. dropped after projecting holiday season sales that fell short of analysts’ estimates.

Equities struggled to gain traction Wednesday as a closely watched gauge of semiconductor companies tumbled. The rout was driven by a slide in Nvidia Corp. and underwhelming results at Advanced Micro Devices Inc. Server maker Super Micro Computer Inc. plunged 33% as Ernst & Young LLP resigned as its auditor. Alphabet Inc. jumped on better-than-expected sales.

Traders trimmed bets on policy easing after data showing the US economy expanded at a robust pace in the third quarter as household purchases accelerated ahead of the election and the federal government ramped up defense spending. A measure of underlying inflation rose 2.2%, roughly in line with the Federal Reserve’s target.

“Solid but not blistering growth fits nicely within the current economic backdrop,” said Bret Kenwell at eToro. “Too hot of a print and investors would likely question the Fed’s decision to cut rates by 50 basis points in September, while a weak print could reignite worries about a deteriorating economy.”

Kenwell says investors should cheer for strong economic data — even if that means slower-than-expected rate cuts from the Fed.

“It’s far better to have a strong economy and earnings driving stocks higher rather than hopes of easing monetary policy from the Fed,” he said.

The S&P 500 fell 0.3%. The Nasdaq 100 slid 0.8%. The Dow Jones Industrial Average lost 0.2%. Homebuilders rallied as pending home sales in the US saw their biggest gain since 2020. Visa Inc. climbed on solid results. Eli Lilly & Co. got hit after lowering its guidance amid lackluster sales of its weight-loss drug.

Treasury two-year yields, which are more sensitive to imminent Fed moves, rose seven basis points to 4.16%.

UK bonds fell as investors balked at the new government’s plan for historically high debt issuance to help fund investment and stimulate the economy, which could mean higher for longer rates. Oil rebounded.