Markets Overview

  • ASX SPI 200 futures up 0.3% to 8,242.00
  • Dow Average up 0.3% to 42,096.78
  • Aussie down 0.1% to 0.6750 per US$
  • US 10-year yield little changed at 4.0217%
  • Australia 3-year bond yield rose 12 bps to 3.73%
  • Australia 10-year bond yield rose 9.2 bps to 4.17%
  • Gold spot down 0.7% to $2,623.19
  • Brent futures down 4.2% to $77.57/bbl

Economic Events

  • 11:00: (AU) RBA’s Kent-Speech
  • 11:00: (AU) Australia to Sell A$500 Million 3.25% 2039 Bonds

The world’s largest technology companies drove stocks higher, with the market rebounding from its worst session in a month. A rout in Treasuries eased as bets on Federal Reserve rate cuts stabilized. Oil sank.

Equities closed within a striking distance of their all-time highs, with the S&P 500 up 1%. Chipmakers led gains on Tuesday as Nvidia Corp. extended a five-day rally to 14%. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 1.7%. Wall Street’s favorite volatility gauge — the VIX — dropped from its highest since August.

“We expect equities will ‘back and filling’ in October as the earnings season begins,” said Craig Johnson at Piper Sandler. “Investors should use ‘health’ pullbacks that confirm key support to add to positions.”

Traders also waded through remarks from US policymakers.

Fed Bank of Boston President Susan Collins noted that rate cuts should be careful and data-based. Her Atlanta counterpart Raphael Bostic said while risks to inflation have come down, threats to the labor market have risen, though the economy is still strong. Governor Adriana Kugler said officials should keep the focus on bringing inflation to target, with a “balanced approach” that avoids a slowdown in jobs.

“The US data is not so strong that the Federal Reserve’s contribution to the global rate-cutting cycle looks set to end,” said Mark Haefele at UBS Global Wealth Management. “We therefore maintain our conviction for investors to position for lower rates.”

The S&P 500 topped 5,750. Honeywell International Inc. gained on plans to spin off its advanced materials division. Energy stocks joined oil lower and US-listed Chinese stocks tumbled as Beijing stopped short of launching more major stimulus. Roblox Corp. dropped as Hindenburg Research said it’s betting against the gaming platform.

Treasury 10-year yields were little changed at 4.02%. A $58 billion sale of three-year Treasuries was soft. West Texas Intermediate crude fell 4.6% to $73.57 a barrel.