Record close for S&P 500 and Dow Jones amid positive economic sentiment

The S&P 500 reached a new all-time closing high on Monday, extending last week's momentum following the Federal Reserve's recent interest rate cut.

The broad market index rose 0.28 per cent, finishing at 5,718.57, while the Dow Jones Industrial Average gained 61.29 points, or 0.15 per cent, to close at a record 42,124.65. The Nasdaq Composite also inched higher by 0.14 per cent, closing at 17,974.27.

Turning to US sectors, all closed higher overnight except for Technology, Communication Services and Health. Energy was the best performer, closely followed by Consumer Discretionary.

In company related news, Micron Technology's stock rose 2.9 per cent following JPMorgan's reiteration of an overweight rating ahead of its earnings report, anticipated on Wednesday, with analysts forecasting positive results driven by robust demand for artificial intelligence and server products. Tesla shares increased by 4.9 per cent after Barclays maintained an equal weight rating, suggesting that the company's third-quarter delivery figures could exceed expectations, providing a potential short-term boost for the stock. Additionally, AeroVironment, a defence contractor, saw its shares surge over 11 per cent after the US Army lifted a stop work order on a $990 million contract, marking the stock's largest gain since August 28, when it had a 9 per cent increase.

Overnight, investors digested fresh economic data, including a report showing the U.S. PMI manufacturing activity hitting a 15-month low in August. Traders are now keeping a close eye on upcoming economic indicators, particularly weekly jobless claims data due on Thursday, to assess the strength of the economy and labor market.

India's finished steel imports from China hit a seven-year high during the first five months of the 2024/25 financial year. India's overall finished steel imports also reached a six-year high at 3.7 million metric tons in the April-August period of this year, and the country was a net importer. The world's second-biggest crude steel producer has been consuming the alloy at a faster pace with robust demand from the infrastructure and automotive sectors.

Futures

The SPI futures are pointing to a 0.1 per cent fall.

Currency

One Australian dollar at 7.30am was buying 68.37 US cents.

Commodities

Gold added 0.24 per cent. Silver lost 1.33 per cent. Copper added 0.1 per cent. Oil fell 0.89 per cent.

Figures around the globe

European markets closed higher. London’s FTSE added 0.36 per cent, Frankfurt gained 0.68 per cent, and Paris closed 0.1 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng lost 0.06 per cent, while China’s Shanghai Composite closed 0.44 per cent higher.

Yesterday, the Australian share market closed 0.69 per cent lower at 8153.

Ex-dividends
Atlas Arteria (ASX:ALX) is paying 20 cents unfranked
Briscoe Group (ASX:BGP) is paying 11.5388 cents unfranked
Pacific Smiles Group (ASX:PSQ) is paying 3.25 cents fully franked
Southern Cross Electrical Engineer Ltd (ASX:SXE) is paying 5 cents fully franked
WT Financial Group Ltd (ASX:WTL) is paying 0.5 cents fully franked

Dividends payable
AGL Energy Ltd (ASX:AGL)
Deterra Royalties Ltd (ASX:DRR)
Steadfast Group Ltd (ASX:SDF)

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

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