🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

ASX 200 adds 0.7% as dovish Powell boosts US stocks to fresh records

Published 21/03/2024, 09:45 am
© Reuters
AUD/USD
-
US500
-
AXJO
-
BTC/USD
-

Investing.com - Australian share markets listed at the start of Thursday's session, as US stocks extended record highs overnight. This surge came in response to signals from Federal Reserve policymakers that they anticipate a shift towards interest rate cuts within this calendar year. Concurrently, gold made a strong comeback, nearing $US2200 an ounce.

UPGRADE YOUR TRADING STRATEGIES WITH INVESTING PRO AND UNLOCK ACCESS TO AI-POWERED PROPICKS, PROTIPS, AND MORE! FOR 10% OFF USE COUPON CODE: "INVPRODEAL"

The S&P 500 achieved a record closing high of 5224.62, marking its first close above 5200 points. The index also set a new all-time high during the session at 5226.19. Market strategist Charlie Bilello highlighted the rapid growth, noting that it took only 56 days for the index to move from 4900 to 5200 points, compared to 757 days to climb from 4800 to 4900.

Shares began their ascent following the release of the Fed policy decision statement and updated economic projections. Gains were further extended after Fed chairman Jerome Powell clarified that while inflation started 2024 higher than anticipated, policymakers still foresee price pressures easing as the year progresses.

The yield on the US 10-year note was 2 basis points lower at 4.27% after the meeting.

In his press conference, Powell reiterated that policymakers are eager to see further signs of inflation cooling towards the Fed's 2% target before committing to cuts, yet he still anticipates cuts in 2024.

For local investors, New Zealand will release its fourth-quarter GDP data at 8.45am, and Australia will release February jobs data at 11.30am. The Australian economy is expected to have added about 50,000 positions last month, bouncing back from a weak January, with the jobless rate predicted to remain largely unchanged from its 4.1% reading in January.

On Thursday, Brickworks Ltd (ASX:BKW), Sigma Pharmaceuticals Ltd (ASX:SIG), and Washington H Soul Pattinson & Co Ltd (ASX:SOL) will release earnings results, and Cochlear Ltd (ASX:COH) will trade ex-dividend.

Other highlights include ASX futures up 49 points or 0.6% to 7799 near 7 am AEDT, the AUD up 0.8% to 65.86 US cents, and Bitcoin up 5.2% to $US67,158 at 8am AEDT. On Wall St at 4pm: Dow +1% S&P +0.9% Nasdaq +1.3%. In New York: BHP (ASX:BHP) BHP +2% Rio +1.7% Atlassian -0.1%. Tesla (NASDAQ:TSLA) +2.5% Microsoft (NASDAQ:MSFT) +0.9% Apple (NASDAQ:AAPL) +1.5% Nvidia +1.1%. Alphabet (NASDAQ:GOOGL) +1.2% Amazon (NASDAQ:AMZN) +1.3% Meta +1.9%. VIX -5.6% QQQ +1.2% TLT -0.03%. Stoxx 50 -0.2% FTSE -0.01% DAX +0.2% CAC -0.5%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.