MegaCap tech names push the broad index to new highs

Markets continued to march upwards in light trade on a shortened trading session ahead of the Independence Day holiday. Megacap Tech names dominated the tape and set the positive tone for the broader market.

The S&P 500 added 0.51 per cent to close at 5,537.02, setting another record high. The Nasdaq closed up 0.88 per cent, ending the session at 18,188.30 and also setting a new record high close. The Dow Jones bucked the trend and just tipped into the red closing down 0.06 per cent. The 30-stock index was weighed down by a nearly 1.7 per cent drop in UnitedHealth.

As expected trading volumes were light as the NYSE closed early at 1pm ET. Markets will be closed on Thursday for Independence Day.

The day belonged to the Megacap names with Nvidia surging another 4.6 per cent, and Tesla adding 6.5 per cent to its recovery over the last month.

The Institute for Supply Management said its services PMI slumped to a four-year low in June, to 48.8 from 53.8 in May, undershooting the 52.7 consensus forecast. In addition to the PMI, ADP data showed less private payroll growth than expected in June, while weekly jobless claims numbers came in higher than economists forecast.

Continued signs of contraction has investors hopeful that the Federal Reserve has seen sufficient evidence to allow the Fed to begin cutting interest rates.

Turning to US sectors, the best performing sector was Technology which closed up 1.48 per cent. The worst performer was Healthcare which finished down 0.73 per cent

In European news, stocks closed higher Wednesday, as sentiment remains on edge ahead of two major elections. The pan-European Stoxx 600 closed 0.8 per cent higher, with most sectors in the green led by mining stocks, up 2.3 per cent.

Investors now nervously await the outcome from two national parliamentary elections, with the U.K. heading to the polls on Thursday followed by France on Sunday. Surveys are pointing to a massive win by the U.K.’s opposition centre-left Labour Party, an outcome that is seen as a positive by markets.

Shipping giant Maersk shares rallied 3.8 per cent higher after the company said it has withdrawn from sales talks with logistics firm DB Schenker citing integration challenges.

In local markets, the May Trade Balance is due out at 11.30am AEST.

Futures

The SPI futures are pointing to a 0.9 per cent gain.

Currency

One Australian dollar at 7.30am was buying 67.05 US cents.

Commodities

Gold has added 1.54 per cent. Silver has gained 3.99 per cent. Copper has added 2.59 per cent. Oil has risen 1.29 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.61 per cent, Frankfurt gained 1.16 per cent, and Paris closed 1.24 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.26 per cent, Hong Kong’s Hang Seng added 1.18 per cent while China’s Shanghai Composite closed 0.49 per cent lower.

Yesterday, the Australian share market closed 0.28 per cent higher at 7,739.88

Ex-dividends
Clime Capital (ASX:CAM) is paying 1.35 cents fully franked

Dividends payable
AFT Pharmaceuticals Ltd (ASX:AFP)
Incitec Pivot Ltd (ASX:IPL)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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