Stocks climbed for a second consecutive session on Wednesday, with the S&P 500 and Dow Jones Industrial Average reaching record highs as technology shares surged and investors brushed aside geopolitical worries.
The S&P 500 rose 0.71 per cent, closing at 5,792.04 after hitting an all-time peak, while the Nasdaq Composite increased by 0.6 per cent to finish at 18,291.62. The Dow soared 431.63 points, or 1.03 per cent, ending at a record 42,512.00.
Tech stocks were key drivers of the rally, with Amazon and Apple each gaining over 1 per cent. Super Micro Computer jumped 4 per cent. This advance helped to offset a rocky start to October, bringing the major indices into positive territory for the month. The utilities sector was the worst performer on the day.
Stocks held onto their gains following the release of minutes from the Federal Reserve’s September meeting, which revealed that a “substantial majority” of participants favored a larger rate cut of half a percentage point.
Wednesday’s upswing occurred despite ongoing concerns about a wider conflict in the Middle East and a lackluster session in China, where investors took profits from a recent stimulus-driven rally.
Wall Street recently enjoyed a robust session fueled by tech gains and falling oil prices, reflecting growing confidence that the Fed can achieve a soft landing, particularly after last week’s jobs report indicated ongoing strength in the labor market.
Despite an underlying upward trend, the market may encounter further volatility during what is traditionally the most turbulent month of the year, especially with the U.S. presidential election approaching.
On the economic front, investors are looking forward to the September consumer and producer price index reports due out Thursday and Friday. Earnings season kicks off Friday with major banks JPMorgan Chase and Wells Fargo.
In company news, shares of Astera Labs surged 15.6 per cent after the company unveiled new fabric switches for artificial intelligence, enhancing its data center connectivity offerings.
Norwegian Cruise Line shares climbed 10.9 per cent following a Citi upgrade from neutral to buy, with the firm anticipating significant earnings growth and margin expansion.
Rio Tinto shares dipped 0.5 per cent in afternoon trading, marking the stock’s eighth straight day of losses, following its announcement of an all-cash acquisition of fellow miner Arcadium Lithium for $5.85 per share.
In commodities, crude oil futures fell slightly on Wednesday after a steep sell-off amid uncertainties regarding Israel’s potential response to Iran.
Futures
The SPI futures are pointing to a 0.4 per cent gain.
Currency
One Australian dollar at 7.50am was buying 67.19 US cents.
Commodities
Gold lost 0.35 per cent. Silver added 0.41 per cent. Copper fell 1.08 per cent. Oil lost 0.30 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.65 per cent, Frankfurt gained 0.99 per cent, and Paris rose 0.52 per cent.
Turning to Asian markets, Tokyo’s Nikkei added 0.87 per cent, while Hong Kong’s Hang Seng fell 1.38 per cent and China’s Shanghai Composite dropped 6.62 per cent.
Yesterday, the Australian share market closed 0.13 per cent higher at 8187.
Ex-Dividends
Duxton Water Ltd (ASX:D2O) is paying 3.7 cents fully franked
WAM Active Limited (ASX:WAA) is paying 3 cents fully franked
Dividends payable
Brambles Ltd (ASX:BXB)
Cochlear Ltd (ASX:COH)
Cryosite Ltd (ASX:CTE)
Endeavour Group Ltd (ASX:EDV)
Finbar Group Ltd (ASX:FRI)
Imdex Ltd (ASX:IMD)
Pacific Smiles Group Ltd (ASX:PSQ)
Pepper Money Ltd (ASX:PPM)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.