A multi-day rally for the S&P 500 came to an end after cooler-than-expected inflation data for June pushed traders to bet on more interest rate cuts this year.
The benchmark index closed down 0.9 per cent on Thursday, ending a seven-day winning streak that had been its longest rally in 2024. The tech-heavy Nasdaq Composite closed down nearly 2 per cent.
Analysts explained that the move in equities was mostly a rotation out of mega-cap stocks like Big Tech groups, and into smaller companies, which investors bet would benefit from lower interest rates. The Russell 2000, which tracks smaller companies, rose 3.6 per cent, marking its best day since November.
Although there may be some delay, we should see this translate within Australian landscape.
