Nasdaq hits new high as BigTech stocks rally

Big Tech led the move up as investors chose to look past a higher April PPI number and ahead to the CPI print due tomorrow US time. All three US benchmarks closed higher, extending gains in afternoon trade with Tesla and Nvidia pacing the magnificent seven tech stocks.

The Nasdaq closed 0.75 per cent higher setting a new record close. The Dow Jones closed up 0.32 per cent and the S&P 500 added 0.48 per cent.

The PPI number for April came in higher than consensus, which again raised questions about the sticky inflationary environment and expectations that the Federal Reserve would begin cutting rates later this year.

The PPI gained 0.5 per cent from the prior month, higher than the 0.3 per cent that economists polled by Dow Jones had anticipated. This was tempered by the March numbers being revised down to show a 0.1 per cent decline which eased initial concerns on the April print.

All eyes now turn to US CPI numbers due out tonight (10.30pm AEST). The CPI carries considerably more weight than the PPI.

Also overnight the Federal Reserve Chairman, Jerome Powell, commented that the central bank would be patient as it assesses incoming data, essentially reiterating that rates will remain on hold for the foreseeable future.

In company news, Paramount fell more than 7 per cent on media reports that Sony is reconsidering its offer to buy the company. Sony and Apollo sent a letter earlier this month to Paramount Global’s board expressing interest in an all-cash $26 billion offer for the company. GameStop and AMC Entertainment Holdings, which each leapt more than 70 per cent in the prior session, extended gains.

Turning to US sectors, the best performing sector was Tech which closed the day up 0.93 per cent. The worst performing sector was Consumer Staples which finished 0.22 per cent lower.

In commodity related news, Peru's copper production surged by 3.5 per cent in Q1/2024 compared to the previous year, led by significant output growth from top mining companies like Southern Copper and Minera Antamina.

President Joe Biden is significantly increasing tariffs on Chinese imports, including electric vehicles and solar cells, aiming to safeguard US jobs ahead of the election. The White House is implementing $18 billion worth of tariff increases, strategically targeting sectors to allow US companies time to compete with Chinese counterparts in green technology, notably quadrupling tariffs on Chinese electric vehicles to 100 per cent this year.

Futures

The SPI futures are pointing to a 0.5 per cent gain.

Currency

One Australian dollar at 7.40am was buying 66.25 US cents.

Commodities

Gold has added 0.72 per cent. Silver has gained 0.91 per cent. Copper has jumped 2.71 per cent. Oil was down 1.39 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.16 per cent, Frankfurt lost 0.14 per cent, and Paris closed 0.20 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 0.46 per cent, Hong Kong’s Hang Seng lost 0.22 per cent while China’s Shanghai Composite closed 0.07 per cent lower.

The Australian share market closed 0.30 per cent lower at 7,726.76.

Ex-dividends
Sandon Capital Ltd (ASX:SNC) is paying 2.75 cents fully franked
WAM Alternative (ASX:WMA) is paying 2.6 cents fully franked

Dividends payable
Charter Hall Long WALE REIT (ASX:CLW)
DRA Global Ltd (ASX:DRA)
Waterco Ltd (ASX:WAT)

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

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