Markets Overview
- ASX SPI 200 futures up 0.7% to 8,401.00
- Dow Average up 0.4% to 44,580.08
- Aussie up 0.5% to 0.6261 per US$
- US 10-year yield fell 4.3bps to 4.5126%
- Australia 3-year bond yield rose 2.9 bps to 3.78%
- Australia 10-year bond yield rose 3.7 bps to 4.42%
- Gold spot up 1.0% to $2,843.11
- Brent futures up 0.1% to $76.07/bbl
Economic Events
- 09:00: (AU) Jan. S&P Global Australia PMI Servi, prior 50.4
- 09:00: (AU) Jan. S&P Global Australia PMI Compo, prior 50.3
Technology shares got hit in late hours as Alphabet Inc. and Advanced Micro Devices Inc.’s quarterly figures failed to inspire.
A $329 billion exchange-traded fund tracking the Nasdaq 100 (QQQ) slipped after the close of regular trading. Alphabet lost 7% as its revenue missed expectations after growth in the cloud business slowed. AMD slid 5% as disappointing results for its data center division signaled the company is not making gains on Nvidia Corp. in artificial-intelligence computing.
In regular hours, a wave of dip buying lifted stocks after a wild day for financial markets, with big tech leading the way. Following a slide fueled by uncertainties over a trade war, the S&P 500 rose almost 1%. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 1.7%. Meta Platforms Inc. rose for a 12th consecutive session — its longest winning streak ever.
“Short-term market jitters have proven good short-term buying opportunities,” said Craig Johnson at Piper Sandler.
The latest reading on US job openings underscored a gradual slowdown on the labor front. To Krishna Guha at Evercore, the data eases upside risks into Friday’s employment report in a way that is helpful for the Federal Reserve and markets.
Meantime, the first volleys in the latest US-China trade war made clear that Xi Jinping is taking a more cautious approach than during Donald Trump’s first term. After the US leader gave a last-minute reprieve to both Canada and Mexico, his 10% tariffs on China took effect on Tuesday. Within seconds, Beijing announced additional tariffs on roughly 80 products to take effect on Feb. 10.
“There is a reasonable likelihood that the ultimate impact from these tariffs may be less than expected,” said Todd Ahlsten at Parnassus Investments. “These tariffs may also represent the first round of an ultimate negotiation, which could reduce their ultimate impact.”
The S&P 500 rose 0.7%. The Nasdaq 100 climbed 1.3%. The Dow Jones Industrial Average added 0.3%. Palantir Technologies Inc. soared 24% on a bullish forecast. Merck & Co. sank 9.1% after halting shipments to China of its Gardasil vaccine. Estée Lauder Cos. sank 16% on a disappointing revenue outlook.
A UBS Group AG basket of stocks at risk from the proposed tariffs rebounded after losing over 6.5% in two days. The yield on 10-year Treasuries declined five basis points to 4.51%. The Bloomberg Dollar Spot Index fell 0.7%. The Mexican peso slid 0.6%. Canada’s loonie rose 0.8%.
