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ASX 200 eases at the open, S&P 500 resets records

Published 22/03/2024, 09:37 am
© Reuters
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Investing.com - Despite another record-breaking session on Wall Street, the Australian Stock Exchange traded slightly lower at Friday's open amid a significant drop in Apple Inc (NASDAQ:AAPL) shares, following a lawsuit filed by the U.S. Department of Justice against the tech giant.

Nonetheless, the United States market saw an overall rise, driven by a growing interest in artificial intelligence technologies. The S&P 500 index saw a 0.3% increase, setting a new record at 5241.53 after peaking at 5261.10. Meanwhile, the Dow Jones Industrial Average ended just 220 points shy of the 40,000 mark.

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After the market closed, both Nike and Lululemon reported earnings that surpassed expectations. Nike Inc (NYSE:NKE) experienced a slight increase in extended trading, while Lululemon Athletica Inc (NASDAQ:LULU) shares dipped by 10% due to its guidance failing to meet expectations. FedEx Corporation (NYSE:FDX) also reported a higher-than-expected profit, causing its shares to soar by 13% after hours.

Gold prices eased to roughly $US2180 per ounce after reaching a new record high, marking nearly a 10% increase since mid-February. According to a long-term commodities update by Focus Economics, gold is expected to trade well above its 10-year average over the next decade.

Shares of Micron Technology (NASDAQ:MU) surged by 14% after the chipmaker reported an unexpected profit for the quarter and provided a bullish outlook. This positive news also uplifted other chipmakers, including Nvidia, Broadcom (NASDAQ:AVGO), and Super Micro Computer.

Reddit Inc (NYSE:RDDT) also made a strong debut on the market, with a late trade surge of 46%.

Market highlights include ASX 200 Futures down by 14 points or 0.2% to 7825 as of 7am AEDT, and a slight dip in the Australian dollar by 0.2% to 65.70 US cents. Bitcoin also saw a decline of 2.9% to $US65,128 by 7.51am AEDT.

Hopes for lower interest rates continue to influence global markets as central banks worldwide signal their readiness to reduce rates as soon as data permits. The Swiss National Bank recently cut its key rate by a quarter point, while the Bank of England maintained its current rate, with two policymakers shifting to a 'hold' stance.

Andrew Bailey, the governor of the Bank of England, stated that while signs of inflation decreasing are promising, the time to cut interest rates has not yet come. However, Evercore ISI suggests that the odds are leaning towards a rate cut by June, influenced by signals from the Federal Reserve and the European Central Bank.

Today's agenda includes the release of the Reserve Bank of Australia's Financial Stability Review at 11.30am.

On the bond markets, Australia 10-Year rates were at 4.095%.

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