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The S&P 500 trimmed an earlier decline Tuesday, boosted by tech shares, as Wall Street looked to regain its footing after a tough start to 2024.
The broad market index was down 0.2 per cent. At its lows of the day, the benchmark had lost 0.7 per cent. The Dow Jones Industrial Average traded 201 points lower, or 0.5 per cent, after being down as much as 309.71 points. The Nasdaq Composite recovered from a 0.9 per cent slide and was last up about 0.1 per cent.
Nvidia traded more than 3.5 per cent higher, reaching a fresh all-time high. Amazon was also up more than 1 per cent along with Alphabet. Shares of Juniper Networks also popped more than 22 per cent on Tuesday after a Wall Street Journal report said Hewlett Packard Enterprise could announce a deal to acquire the networking hardware company for about $13 billion as soon as this week. The deal would help bolster the nearly 100-year-old technology company's artificial intelligence (AI) offerings.
Tech, the big outperformer for 2023, struggled out of the gate in 2024, putting pressure on the broader market. Year to date thus far, the space is down more than 1 per cent.
Health care was one of the only S&P 500 sectors to trade higher Tuesday. For 2024, it’s up 3 per cent — making it the best performer.
Those moves come after a strong trading session for equities. The S&P 500 and the Nasdaq Composite on Monday rallied as mega-cap tech stocks bounced from last week’s declines.
Later this week, investors will parse through a pair of key inflation readings to gain clarity into the path forward for rate cuts from the Federal Reserve. The December consumer price index is set for release Thursday, followed by the producer price index on Friday.
Companies reporting earnings this week include Taiwan Semiconductor Manufacturing Company and Infosys on Thursday, as well as JPMorgan Chase, UnitedHealth, Bank of America and Delta Air Lines on Friday, among other financial heavyweights.
Turning to commodities, during Q4/2023, Europe generated more electricity from wind than coal, emphasising progress in energy transition. Sustaining clean energy momentum depends on key coal-consuming countries (Germany, Poland, Turkey) and their economic conditions.
Oil prices rebounded on Tuesday, with WTI futures up 2.08 per cent at $72.24 per barrel and Brent futures gaining 1.76 per cent at $77.46 per barrel, following a 3 per cent drop on Monday due to Saudi Arabia's price cuts and ongoing geopolitical tensions.
Futures
The SPI futures are pointing to a 0.13 per cent fall.
Currency
One Australian dollar at 7:30 AM was buying 66.86 US cents.
Commodities
Gold has gained 0.13 per cent. Silver has lost 0.62 per cent. Copper has lost 1.26 per cent. Oil has gained 1.94 per cent.
Figures around the globe
European markets closed lower yesterday. London’s FTSE lost 0.13 per cent, Frankfurt lost 0.17 per cent, and Paris closed 0.32 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei gained 1.16 per cent, Hong Kong’s Hang Seng lost 0.21 per cent and China’s Shanghai Composite closed 0.2 per cent higher.
Yesterday, the Australian share market closed 0.93 per cent higher at 7,520.52.
Note: Figures recorded at 7:40am AEDT. Updated figures and the video recording will be available at 9:00am AEDT.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
