Markets Overview

  • ASX SPI 200 futures up 0.2% to 8,984.00
  • S&P 500 up 0.3% to 6,861.33
  • Dow Average little changed at 49,543.03
  • Aussie down 0.7% to 0.7035 per US$
  • US 10-year yield rose 2.0bps to 4.0789%
  • Australia 3-year bond yield rose 3.5 bps to 4.25%
  • Australia 10-year bond yield rose 3.8 bps to 4.72%
  • Gold spot up 2.1% to $4,979.59
  • Brent futures up 4.2% to $70.24/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 126-Day Bills on Feb. 19
  • 10:30: (AU) Australia to Sell A$1 Billion 91-Day Bills on Feb. 19
  • 10:30: (AU) Australia to Sell A$1 Billion 203-Day Bills on Feb. 19
  • 11:30: (AU) Jan. Employment Change, est. 20,000, prior 65,200
  • 11:30: (AU) Jan. Unemployment Rate, est. 4.2%, prior 4.1%
  • 11:30: (AU) Jan. Participation Rate, est. 66.7%, prior 66.7%
  • 11:30: (AU) Jan. Part Time Employment Change, prior 10,400
  • 11:30: (AU) Jan. Full Time Employment Change, prior 54,800

A rebound in stocks gained traction amid easing jitters around artificial-intelligence disruption while a slew of data showed the US economy is holding up. Treasuries fell for a second straight day. Oil jumped.

About 320 shares in the S&P 500 rose. That’s even as minutes of the last Federal Reserve meeting showed “several” officials suggested the central bank may need to raise rates if inflation stays above their goal. After a rout fueled by AI concerns, investors are seeking signs of a bottom. A gauge of chipmakers climbed 1% and an ETF tracking software firms jumped 1.3%.

While AI fears have pummeled share prices of companies across several industries in recent weeks, several stock pickers have been looking at buying opportunities as they survey the wreckage.

The software stock selloff is likely “overdone” as that was a largely knee-jerk reaction, with investors trying to figure out the winners and losers from AI, according to Paul Stanley at Granite Bay Wealth Management.

“While AI is very promising, investors should not assume that all companies will win on the AI front,” he said.

Retail traders spent a record amount snapping up software shares on Citadel Securities’ platform, which began tracking the data in 2017. “The magnitude, persistence, and breadth of buying activity have materially exceeded prior peaks,” said Scott Rubner, the firm’s head of equity and equity derivatives strategy.

Equities also gained as data showed US industrial production climbed in January by the most in nearly a year. Orders for business equipment rose in December by more than projected while housing starts hit a five-month high.

Meantime, minutes of the Federal Open Market Committee’s Jan. 27-28 meeting revealed that a “vast majority of participants judged that downside risks to employment had moderated in recent months while the risk of more persistent inflation remained.”

The S&P 500 rose to around 6,880. The yield on 10-year Treasuries climbed two basis points to 4.08%. A $16 billion sale of 20-year bonds drew lackluster demand. The dollar gained 0.5%.

Oil rallied as traders weighed whether talks between the US and Iran will be enough to avert conflict, following a report that American military intervention could come sooner than expected. Gold hovered near $5,000.