Markets Overview

  • ASX SPI 200 futures little changed at 8,681.00
  • S&P 500 up 0.6% to 6,875.58
  • Dow Average up 0.5% to 48,382.21
  • Aussie up 0.6% to 0.6654 per US$
  • US 10-year yield rose 2.3bps to 4.1686%
  • Australia 3-year bond yield rose 4.8 bps to 4.16%
  • Australia 10-year bond yield rose 4.6 bps to 4.79%
  • Gold spot up 2.2% to $4,432.88
  • Brent futures up 2.7% to $62.10/bbl

Economic Events

  • 11:30: (AU) RBA Minutes of Dec. Policy Meeting
  • 11:30: (AU) RBA Minutes of Dec. Policy Meeting

The holiday-shortened week started with gains in stocks amid a broad advance that saw a continuation of the bullish momentum on Wall Street. Oil and gold rallied as the dollar fell.

Equities erased their December losses, with the S&P 500 set for an eighth straight up month – the longest winning run since 2018. Almost 400 of its shares rose Monday as the benchmark approached a record. Tesla Inc. and Nvidia Corp. led megacaps higher. A gauge of smaller firms climbed 1.2%.

Despite bouts of volatility and concerns about the AI trade, tech has led the market to the upside this year, and it will probably be the difference between a positive and negative December, said Chris Larkin at E*Trade from Morgan Stanley.

“If a Santa Claus rally does kick in this year, St. Nick’s gift bag will likely need to be full of positive tech sentiment,” he noted.

It’s been a strong year for stocks and the big question is whether investors will carry that positive mood into 2026.

Positioning in equities is rising and fund managers are maintaining record low levels of cash. Their expectations of a further rally are outweighing concerns about valuations. The Federal Reserve path is also being closely watched, with the market pricing two rate cuts next year.

Fed Governor Stephen Miran told Bloomberg Television the central bank risks sparking a recession unless it continues lowering rates in 2026.

The S&P 500 climbed to around 6,880. The yield on 10-year Treasuries rose two basis points to 4.16%. The dollar halted a three-day advance.

Oil rallied while gold and silver jumped to all-time highs amid geopolitical tensions.