Markets Overview

  • Dow Average up 0.6% to 44,956.14
  • Aussie down 0.8% to 0.6436 per US$
  • US 10-year yield fell 4.8bps to 4.1762%
  • Australia 3-year bond yield fell 8 bps to 3.83%
  • Australia 10-year bond yield fell 4 bps to 4.26%
  • Gold spot up 0.3% to $2,652.04
  • Brent futures down 1.5% to $72.51/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 154-Day Bills
  • 10:30: (AU) Australia to Sell A$1 Billion 98-Day Bills
  • 11:30: (AU) Oct. Imports MoM, prior -3.1%
  • 11:30: (AU) Oct. International Trade Balance, est. A$4.5b, prior A$4.61b
  • 11:30: (AU) Oct. Household Spending MoM, est. 0.3%, prior -0.1%
  • 11:30: (AU) Oct. Exports MoM, prior -4.3%
  • 11:30: (AU) Oct. Household Spending YoY, est. 2.2%, prior 1.3%

Stocks hit all-time highs as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The euro wavered as the French government fell after a no-confidence vote in Parliament.

A rally in big tech drove the S&P 500 to its 56th closing record in 2024. The Nasdaq 100 climbed more than 1%. Nvidia Corp. led a gauge of the “Magnificent Seven” megacaps higher, with the group’s surge this year approaching 65%. Salesforce Inc. and Marvell Technology Inc. soared as their results boosted hopes both companies will keep benefiting from an industrywide boom in artificial intelligence.

Powell also said officials can afford to be cautious as they lower rates toward a neutral level — one that neither stimulates nor holds back the economy. He spoke at the New York Times DealBook Summit in New York.

“We view this as slightly hawkish — but stopping well short of challenging the market’s growing confidence that a December cut is the base case, which has been our view all along,” said Krishna Guha at Evercore.

One of Powell’s favorite barometers of the economy — the Beige Book — showed economic activity increased slightly in November, and businesses grew more upbeat about demand prospects.

The S&P 500 rose 0.6%. The Nasdaq 100 climbed 1.2%. The Dow Jones Industrial Average added 0.7%.

Treasury 10-year yields declined four basis points to 4.18%. French bond futures held onto earlier gains after far-right leader Marine Le Pen joined a left-wing coalition to topple the government, setting the stage for further political wrangling that has weighed on the nation’s assets for months.