Markets Overview
- ASX SPI 200 futures up 0.5% to 8,024.00
- Dow Average up 1.5% to 42,614.52
- Aussie up 0.2% to 0.6283 per US$
- US 10-year yield rose 8.6bps to 4.3327%
- Australia 3-year bond yield fell 1.1 bps to 3.75%
- Australia 10-year bond yield rose 0.6 bps to 4.40%
- Gold spot down 0.5% to $3,006.06
- Brent futures up 1.4% to $73.14/bbl
Economic Events
- 10:10: (AU) RBA’s Jones-Fireside Chat
Stocks saw one of their best sessions of the year, with the Nasdaq 100 adding 2.2%, amid signs US trade sanctions will be narrower than feared, including a suggestion by President Donald Trump that some countries will get breaks. Bonds fell alongside gold. The dollar wavered.
Wall Street’s risk-on bid lifted shares of nearly all stripes in a rebound from a sharp selloff that has challenged the notion of US exceptionalism. A gauge of the “Magnificent Seven” megacaps rallied the most in two months, with Tesla Inc. soaring 12% and Nvidia Corp. leading chipmakers higher. The advance trimmed a slide driven by concern over lofty valuations that put big techs on pace for their worst quarter since 2022.
Markets gripped by anxiety about the economic impacts of an all-out trade war got relief from signs the coming wave of US tariffs is shaping up as more focused than the barrage Trump has occasionally threatened. The president twice on Monday signaled trading partners would receive possible exemptions or reductions.
“Stocks look to continue to rally from oversold levels, and any reduction in potential tariff impacts will be an upward catalyst,” said Ivan Feinseth at Tigress Financial Partners. “I believe we have seen the worst of the market’s pullback, though we will continue to see increased volatility at the beginning of next month based on the outcome of President Trump’s tariff policies.”
The S&P 500 rose 1.8%. The Dow Jones Industrial Average added 1.4%. A measure of the Magnificent Seven megacaps gained 3.4%. A closely watched index of chipmakers jumped 3%. The Russell 2000 advanced 2.5%.
The crypto world rallied. The yield on 10-year Treasuries rose nine basis points to 4.33%. Oil climbed as Trump said he would seek a 25% tariff on nations buying crude and gas from Venezuela.
