Big tech names surged higher leading the broader market to new record highs ahead of the highly anticipated inflation data due out tomorrow US time.
The broad S&P 500 closed 1.02 per cent at a record 5,633, its seventh straight day of gains. The Nasdaq added 1.18 per cent to also set a new record close at 18,647. The Dow Jones joined the rally adding 1.09 per cent to close at 39,721.
Tech was the big driver of the day with semi-conductor stocks surging higher. Taiwan Semiconductor closed 3.5 per cent higher after reporting better than expected revenue numbers from April to June. Other semiconductor names Qualcomm and Broadcom rose 0.8 per cent & 0.7 per cent respectively. AI giant Nvidia surged 2.7 per cent higher on the day.
Apple shares closed 1.5 per cent higher to notch its seventh consecutive record close. The stock is up 20 per cent over the past month, outperforming every “Magnificent Seven” stock but Tesla. The company has also reclaimed its position as the most valuable company by market capitalisation.
In other company news, HubSpot shares collapsed 13 per cent after Bloomberg reported that Alphabet has shelved plans to buy company.
Focus is now firmly fixed on key inflation data due out Thursday US time, with the release of the June consumer price index report. Consensus expectations are pointing to a month on month rise of 0.1 per cent and a 3.1 per cent year on-year gain. Core CPI, which excludes energy and food prices, is forecast to have expanded 0.2 per cent from the prior month and 3.4 per cent from a year earlier. The producer price index is set for release Friday.
In a second day of Congressional testimony, Fed Chair Jerome Powell said he felt the US was still heading towards a soft landing where the Fed’s inflation target is met without a punishing rise in the unemployment rate.
Turning to US sectors, all sectors were in the black. Tech was the best performer overnight, closely followed by Materials. Financials recorded the fewest gains.
Futures
The SPI futures are pointing to a 0.9 per cent gain.
Currency
One Australian dollar at 7.20am was buying 67.48 US cents.
Commodities
Gold has added 0.50 per cent. Silver has fallen 0.14 per cent. Copper has gained 0.68 per cent. Oil has risen 0.85 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.66 per cent, Frankfurt gained 0.94 per cent, and Paris closed 0.86 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei added 0.61 per cent, Hong Kong’s Hang Seng lost 0.29 per cent while China’s Shanghai Composite closed 0.68 per cent lower.
Yesterday, the Australian share market closed 0.16 per cent lower at 7,816.81.
Ex-dividends
Transmetro Corporation (ASX:TCO) is paying 5 cents fully franked
Westgold Resources (ASX:WGX) is paying 1.25 cents fully franked
Dividends payable
Duxton Farms (ASX:DBF)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
