US stocks snap losing streak

07Aug

US stocks snap losing streak

 

US stocks jumped Tuesday, recovering some losses from the previous three trading days as investors took a pause from recession fears and Japanese equities rallied.

The Dow Jones Industrial Average rose 294.39 points, or 0.76 per cent, to end at 38,997.66. The S&P 500 advanced 1.04 per cent, closing at 5,240.03. The tech-heavy Nasdaq Composite gained 1.03 per cent to settle at 16,366.85. The major averages snapped a three-day stretch of losses.

All 11 sectors of the broad market index were positive for the day. Real Estate was the best performer, followed by Financials and then Communication Services. Energy recorded the fewest gains.

Several megacap tech stocks also rebounded after a sharp pullback on Monday. Nvidia rose 3.8 per cent, while Meta Platforms advanced 3.9 per cent.

Reddit exceeded revenue expectations driven by data licensing and ad tech investments, while Airbnb disappointed with a weaker-than-expected outlook for bookings.

Super Micro Computer's stock dropped despite a strong sales forecast for AI-related equipment.

Rivian maintained its production and profit targets, indicating progress in its EV operations.

Helping sentiment was a rebound in Japanese stocks. The Nikkei 225 posted their best day since October 2008, soaring 10.2 per cent. That surge comes a day after the benchmark suffered its worst session since 1987, losing 12.4 per cent.

Turning to commodities, global oil demand growth is expected to slow in 2025 due to weakening Chinese economic activity, according to the EIA, while US oil production is projected to increase steadily due to improved drilling efficiency.

In crypto news, Bitcoin and Ether rebounded after a sharp decline caused by broader market volatility. Ether ETF investors bought the dip, contributing to the recovery. However, the overall crypto market remains fragile and dependent on broader economic conditions and geopolitical stability.  

Futures

The SPI futures are pointing to a 0.3 per cent fall.

Currency

One Australian dollar at 7.35am was buying 65.21 US cents.

Commodities

Gold has lost 0.52 per cent. Silver has added 0.03 per cent. Copper has gained 0.70 per cent. Oil has added 0.36 per cent.

Figures around the globe

European markets closed mixed yesterday. London’s FTSE gained 0.23 per cent, Frankfurt added 0.09 per cent, and Paris closed 0.27 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei jumped 10.23 per cent, Hong Kong’s Hang Seng lost 0.31 per cent, while China’s Shanghai Composite closed 0.23 per cent higher.

Yesterday, the Australian share market closed 0.41 per cent higher at 7680.64

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

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
Copyright 2024 – Finance News Network


Source: Finance News Network

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