Markets Overview

  • ASX SPI 200 futures little changed at 8,803.00
  • S&P 500 up 0.6% to 6,913.85
  • Dow Average up 0.7% to 49,417.08
  • Aussie up 1.2% to 0.6840 per US$
  • US 10-year yield little changed at 4.2469%
  • Australia 3-year bond yield rose 6.6 bps to 4.24%
  • Australia 10-year bond yield rose 1.6 bps to 4.80%
  • Gold spot up 1.7% to $4,912.53
  • Brent futures down 1.8% to $64.06/bbl

Economic Events

  • 09:00: (AU) Jan. S&P Global Australia PMI Mfg, prior 51.6
  • 09:00: (AU) Jan. S&P Global Australia PMI Compo, prior 51.0
  • 09:00: (AU) Jan. S&P Global Australia PMI Servi, prior 51.1

The cooling of geopolitical tensions, a rally in big tech and solid economic data fueled gains in stocks, with the market remaining higher after an in-line inflation report. Short-dated bonds fell.

Megacaps led equities higher as comments from Nvidia Corp.’s Jensen Huang bolstered the artificial-intelligence trade. Small firms beat the S&P 500 for a 14th straight session. JPMorgan Chase & Co. pared gains as Donald Trump sued the lender and its head Jamie Dimon over alleged debanking. In late hours, Intel Corp. gave a tepid forecast.

Treasury two-year yields climbed as strong data reinforced the argument for the Federal Reserve to keep rates on hold.

The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and smaller drag from inventories. Initial jobless claims steadied at 200,000 last week. And personal spending rose at a solid pace in November, underscoring consumer resilience.

“US consumers continue to underpin the economy,” said Lale Akoner at eToro. “Resilient spending lowers near-term recession risk and supports corporate revenues, particularly in consumer-facing sectors. However, steady demand also means interest rates are likely to stay higher for longer.”

Meantime, European Union lawmakers are expected to vote on ratifying the bloc’s trade deal with the US, restarting the process after Trump walked back his latest threat to impose tariffs on European allies that opposed his plans to annex Greenland. The island’s prime minister says he’s willing to go further in increasing defense, including agreeing on a permanent NATO mission.

“This episode once again highlights how headline-driven the market remains, and how quickly sentiment can flip when geopolitical risk is dialed back,” said Fawad Razaqzada at Forex.com.

The S&P 500 rose 0.55%. A gauge of the “Magnificent Seven” shares climbed 2.1%. The Russell 2000 of small firms hit a record. A measure of stock volatility — the VIX — tumbled to below 16.

The yield on 10-year Treasuries was little changed at 4.25%. The dollar lost 0.3%. Oil sank as Ukrainian President Volodymyr Zelenskiy discussed plans for trilateral meetings with the US and Russia. Gold rose to all-time highs.