Markets Overview
- ASX SPI 200 futures up 0.5% to 9,089.00
- S&P 500 up 1.1% to 6,735.60
- Dow Average up 1.1% to 46,694.97
- Aussie up 0.2% to 0.6514 per US$
- US 10-year yield fell 2.7bps to 3.9819%
- Australia 3-year bond yield rose 5.4 bps to 3.37%
- Australia 10-year bond yield rose 5.4 bps to 4.15%
- Gold spot up 3.0% to $4,379.82
- Brent futures down 0.6% to $60.95/bbl
Economic Events
- 10:45: (AU) RBA’s Jones-Panel
- 11:00: (AU) Australia to Sell A$300 Million 4.75% 2054 Bonds
President Donald Trump signed an agreement with Australian Prime Minister Anthony Albanese to boost access to critical minerals and rare earths, as the US looks to reduce reliance on Chinese supplies.
Wall Street traders drove stocks higher amid solid signals from Corporate America and hopes that tensions between the world’s two largest economies are cooling. Bond yields edged lower.
With the earnings season well underway, about 85% of the companies in the S&P 500 reporting results so far have beaten profit estimates. That’s helped fuel a rebound in equities, with the benchmark notching its best two-day gain since June. Sentiment was also buoyed by expectations the trade war will de-escalate as the US and China return to the negotiating table.
President Donald Trump reiterated his threat to follow through on a tariff hike on Chinese goods “if there isn’t a deal” by Nov. 1, but stressed plans to meet President Xi Jinping next week. Earlier this month, markets were roiled as Trump raised the prospect of a sky-high tariff rate, citing China’s “hostile” export controls.
“We are seeing the typical seasonal volatility in October, but the recent swings have been relatively shallow by historical standards, as the buy-the-dip mentality appears to be in play,” said Rick Gardner at RGA Investments.
While Friday’s inflation data may take on greater importance due to the government shutdown-driven data drought, Gardner still sees a Federal Reserve rate cut in October. He also noted that a key test will be big tech earnings, with investors looking for clarity on how spending on artificial intelligence is leading to profitability.
“Thank God for earnings season,” said Callie Cox at Ritholtz Wealth Management. “The analysts have been deprived of data for weeks now. When there isn’t a lot of data to latch onto, you get more panic around headlines. A steady stream of fundamental signals is underrated for market stability.”
The S&P 500 rose 1.1%. Apple Inc. hit its first record of 2025 as Loop Capital upgraded the stock to buy, the latest firm to cite positive iPhone demand trends. A gauge of tech megacaps climbed 1.6%. The Russell 2000 index of small firms added 1.9%.
The yield on 10-year Treasuries fell three basis points to 3.98%. Gold jumped. Soybean futures rallied, with growers holding out hope that Trump will make a deal with China to restart stalled American exports.
