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ASX 200 set to rise, Wall St refreshes record highs as tech rallies

Published 06/06/2024, 08:31 am
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Investing.com - Australian shares are set for a boost on Thursday, following a strong performance by US tech stocks and optimism for global rate cuts, spurred by the Bank of Canada's recent rate cut and indications of another cut in July.

The Dow Jones Industrial Average added 0.3%, while the S&P 500 and NASDAQ Composite gained 1.2% and 2%, closing at record highs.

Iron ore experienced a slight fall of 0.3% to $US107.10 a tonne, with ANZ Bank's economics team expressing uncertainty about the outlook for Chinese demand.

NVIDIA Corporation (NASDAQ:NVDA) shares surged by 5.2%, pushing its market valuation to $US3.01 trillion and making it the second-largest publicly traded company, surpassing Apple.

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Apple Inc (NASDAQ:AAPL)shares also saw an increase, with a 0.8% rally leading to a market cap of $US3 trillion. This is the first time since 2002 that Nvidia has been worth more than Apple.

Microsoft Corporation (NASDAQ:MSFT), currently valued at $US3.15 trillion, remains the market cap leader. Its shares rose by 1.9%.

The yield on the US 10-year note fell below 4.30%, having dropped more than 20 basis points over the last month amid ongoing discussions about potential Federal Reserve interest rate cuts.

Despite mixed economic data from the US, the market remains robust. The ADP (NASDAQ:ADP) Research Institute's jobs data was weaker than expected, while the Institute for Supply Management's survey showed that the US service sector expanded the most in nine months.

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