The Dow Jones outperformed the two other major indices as investors appeared to rotate out of tech and into financials and utilities, whilst the sell off in Nvidia gathered pace.
The Dow finished 0.67 per cent higher, whilst the S&P 500 fell 0.31 per cent and the tech heavy Nasdaq slumped 1.09 per cent for its worst day since April.
The Dow broke away from the other major indices supported by names such as Goldman Sachs and Chevron which climbed more than 2 per cent each on the day. JPMorgan gained 1.3 per cent to also bolster the Dow.
In other company news, the sell off in AI giant Nvidia continued to gather momentum with the stock closing 6.7 per cent lower on the day. Despite the selloff, shares are still up nearly 140 per cent for the year.
On the macro front investor attention will now shift to key inflation data due out later this week. The personal consumption expenditure data for May is due to be released on Friday. This is the Federal Reserve’s preferred inflation measure and seen as a critical data point for policy settings.
In commodities news, Bank of America has upgraded their outlook for gold with the Investment Bank telling investors it sees a possible rally in the precious metal up towards $3,000 over the next 12-18 months. The bank cited a potential pick up in non-commercial demand and fed rate cuts as key triggers.
Turning to US sectors, the worst performer was Technology which closed down 2.07 per cent. The best performer was Energy which finished 2.73 per cent higher on the day.
Futures
The SPI futures are pointing to a 0.5 per cent gain.
Currency
One Australian dollar at 7.30am was buying 66.59 US cents.
Commodities
Gold has added 0.57 per cent. Silver has fallen 0.31 per cent. Copper fell 0.08 per cent. Oil has gained 1.11 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.53 per cent, Frankfurt gained 0.89 per cent, and Paris closed 1.03 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei added 0.54 per cent, Hong Kong’s Hang Seng was flat while China’s Shanghai Composite closed 1.17 per cent lower.
Yesterday, the Australian share market closed 0.80 per cent lower at 7,733.69.
Dividends payable
Infratil Ltd (ASX:IFT)
Westpac Banking Corp (ASX:WBC)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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.
