Note: Figures recorded at 7:40am AEDT. Updated figures and a video recording will be available at 9am AEDT.
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The Dow Jones Industrial Average surged to a new record close, buoyed by robust economic data that alleviated concerns about a potential recession. In contrast, the S&P 500 fell short of setting a new benchmark despite achieving an intraday record earlier in the session, as the artificial intelligence sector saw renewed interest.
The Dow climbed 161 points, or 0.37%, finishing at 43,239.05, driven by a notable 9% increase in Travelers' stock following its strong quarterly performance. Meanwhile, the Nasdaq Composite edged up 0.04% to close at 18,373.61, benefiting from gains in semiconductor stocks. The S&P 500, however, dipped 0.02% to settle at 5,841.47.
Chip stocks led Thursday's market momentum but surrendered some gains as the session progressed. Nvidia, a key player in the AI sector, closed up 0.9% after hitting an all-time high earlier in the day. The stock received a boost from Taiwan Semiconductor Manufacturing Company (TSMC), which reported strong third-quarter earnings and raised its revenue outlook for the final quarter of the year. TSMC shares jumped 9.8% as a result.
Michael Green, chief strategist at Simplify Asset Management, noted that the shift back to Big Tech reflects a return to investors' typical behavior. “This feels more like a normalization rather than a broader market shift,” he told CNBC.
Economic data released on Thursday also played a significant role in lifting market sentiment. September retail sales figures showed a 0.4% increase in consumer spending, surpassing the Dow Jones consensus estimate of 0.3%. Excluding autos, sales rose 0.5%, far exceeding the forecast of 0.1%. Additionally, jobless claims for the week ending October 12 were lower than anticipated.
However, Green cautioned that seasonal adjustments likely inflated the retail sales figures. “On a non-seasonally adjusted basis, the numbers were largely flat compared to last year. So, while the market is interpreting this data optimistically, I wouldn’t classify it as significantly stronger,” he said.
In related news, the Federal Reserve is expected to maintain its current interest rate stance amid these economic indicators, focusing on sustaining growth while monitoring inflation trends. Investors will be keenly observing upcoming economic reports for further insights into the market's direction as the year progresses.
Futures
The SPI futures are pointing to a 27 point fall.
Currency
One Australian dollar at 7.35am was buying 66.95 US cents.
Commodities
Gold has added 0.59 per cent. Silver has lost 0.31 per cent. Copper has lost 0.84 per cent. Oil has gained 0.51 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.67 per cent, Frankfurt added 0.77 per cent, and Paris gained 1.22 per cent.
Turning to Asian markets, Tokyo’s Nikkei lost 0.69 per cent , while Hong Kong’s Hang Seng fell 1.02 per cent and China’s Shanghai Composite lost 1.05 per cent.
Yesterday, the Australian share market closed 0.86 per cent higher at 8355.92.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
