The S&P/ASX200 retreated today, falling 53.50 points or 0.65% to 8,156.00, shortly after reaching a new 52-week high.
Despite this decline, the index remains only 0.93% below its highest level for the year, reflecting a generally positive trend, as it has gained 0.86% over the last five days.
Among the day's biggest losers were Webjet Limited, which dropped 10.81%, and EVT Limited, down 3.96%. Over the last five days, the index has gained 0.69% and is currently 1.09% off of its 52-week high.
Both companies contributed to the index's decline as investors moved away from travel and entertainment stocks following recent market rallies.
Despite today’s setback, the S&P/ASX200 remains within reach of its recent high, which could point to the overall resilience of the Australian market.
Utilities led the gains of the day, up 1.25% at 2:00pm today, with Information Technology (0.51%) and Energy (0.60%) not far behind.
Dragging the bourse in the other direction were Consumer Staples, down as much as 2.81%, Communication Services (-0.87%) and Materials (-0.66%) just after lunch.
What does the rate cut mean?
IG senior analyst Tony Sycamore had an eye on the markets as they wrapped up at the end of a momentous week and he had this to say: “US stock markets finished the week mixed after the previous day’s thumping rally driven by the Fed's 50bp rate cut.
“On Friday, Fed Governor Christopher Waller said he backed the Fed's 50bp rate cut, noting inflation was decreasing faster than he had anticipated and indicating the pace of future cuts would be data-dependent.
“He said he is open to another 50bp cut if the labour market deteriorates or inflation falls more than expected.
“Meanwhile, Fed Governor Michelle Bowman, the sole dissenter at the FOMC meeting, expressed her concern that the oversized rate cut might be seen as a ‘premature declaration of victory’ over inflation.
“Although last week's Fed rate cut somewhat diminishes the significance of incoming data, there will be interest in this week’s Flash PMI and Core PCE inflation figures to calibrate expectations against the 75bp or Fed Rate cuts priced into the curve for year-end and the cumulative 200bp of cuts priced by October 2025.”
The five at five
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Rainbow advances Rare Earth recovery with Phalaborwa Project
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