Markets Overview

  • ASX SPI 200 futures little changed at 9,036.00
  • S&P 500 up 0.3% to 6,894.49
  • Dow Average up 0.4% to 47,741.35
  • Aussie up 0.4% to 0.6585 per US$
  • US 10-year yield little changed at 3.9776%
  • Australia 3-year bond yield rose 4.2 bps to 3.45%
  • Australia 10-year bond yield fell 1 bp to 4.17%
  • Gold spot down 0.6% to $3,959.90
  • Brent futures down 2.1% to $64.24/bbl

Economic Events

  • 11:30: (AU) 3Q CPI QoQ, est. 1.1%, prior 0.7%
  • 11:30: (AU) 3Q CPI YoY, est. 3.0%, prior 2.1%
  • 11:30: (AU) 3Q CPI Trimmed Mean QoQ, est. 0.8%, prior 0.6%
  • 11:30: (AU) Sept. CPI YoY, est. 3.1%, prior 3.0%
  • 11:30: (AU) 3Q CPI Weighted Median QoQ, est. 0.9%, prior 0.6%
  • 11:30: (AU) 3Q CPI Trimmed Mean YoY, est. 2.7%, prior 2.7%
  • 11:30: (AU) 3Q CPI Weighted Median YoY, est. 2.7%, prior 2.7%
  • 11:30: (AU) Sept. CPI Trimmed Mean YoY, prior 2.6%

Australia’s 3Q CPI report is likely to show inflation pushing into the upper half of the RBA’s 2%-3% target band, according to Bloomberg Economics. RBNZ Governor Christian Hawkesby speaks about the importance of central bank operational independence.

A rally in the world’s largest technology companies sent stocks to all-time highs amid speculation that artificial intelligence will keep driving earnings for the group that has powered the bull market.

While most shares in the S&P 500 took a breather after a torrid run, tech megacaps kept rising. Microsoft Corp. finalized a new pact with OpenAI that will give the software giant a 27% ownership stake worth about $135 billion. Apple Inc. briefly topped $4 trillion while Nvidia Corp. Chief Executive Officer Jensen Huang dismissed concerns about an AI bubble.

On Wednesday and Thursday, five big techs accounting for about a quarter of the US equity benchmark are due to report results. Investors will be looking for assurances that the billions of dollars for computing infrastructure will continue — and ultimately pay off down the road.

“This group has repeatedly reassured investors that the AI theme is alive and well, and given the number of deals that have been announced over the past few months, it seems likely that this narrative will continue so long as Wall Street rewards them for this approach,” said Bret Kenwell at eToro.

Also buoying sentiment were bets the Federal Reserve will cut rates Wednesday, with traders hoping for clarity as to when officials will stop shrinking the central bank’s portfolio of securities. Bets have grown they may end quantitative tightening as soon as this month.

That’s all happening ahead of President Donald Trump’s Thursday meeting with his Chinese counterpart Xi Jinping. The Wall Street Journal reported the US would roll back some tariffs if Beijing cracks down on the export of chemicals that produce fentanyl.

The S&P 500 closed just shy of 6,900. A gauge of the Magnificent Seven megacaps climbed 1.3%. The yield on 10-year Treasuries was little changed at 3.97%. The dollar fell.