Markets Overview
- ASX SPI 200 futures up 0.6% to 8,721.00
- S&P 500 up 0.8% to 7,501.24
- Dow Average up 0.7% to 50,063.46
- Aussie down 0.5% to 0.7220 per US$
- US 10-year yield rose 1.3bps to 4.4816%
- Australia 3-year bond yield fell 3.9 bps to 4.68%
- Australia 10-year bond yield fell 4.4 bps to 5.02%
- Gold spot down 0.8% to $4,651.56
- Brent futures up 0.9% to $106.62/bbl
Economic Events
- 11:00: (AU) Australia to Sell A$1 Billion 1% 2030 Bonds on May 15
Asian stocks were set to rise Friday after Wall Street hit fresh records, buoyed by a rally in artificial intelligence shares, strong corporate earnings and further signs of resilience in the US consumer.
Equity index futures for Japan, Australia and Hong Kong climbed, after another record-setting day for the S&P 500, which rose 0.8% to close above 7,500 points for the first time.
The action was driven by AI-linked companies including Nvidia Corp., which rose for a seventh session to add 4.4% and brought its market value closer to $6 trillion. Cisco Systems Inc. jumped 13% on a strong outlook and AI infrastructure company Cerebras Systems Inc. soared 68% in its debut, while Applied Materials Inc. shares advanced in after-hours trade on encouraging forecasts.
AI optimism, robust corporate profits and a still-robust economy have sent stocks from one record to the next. A report showed US retail sales rose for a third month, offering an upbeat data point for the health of consumers contending with inflation.
“April retail sales echoed what we’ve heard across corporate conference calls for weeks now: The US consumer remains resilient despite soaring gas prices,” said Bret Kenwell at eToro. “When it comes to stocks though, tech is in the driver’s seat right now, not the consumer.”
In Asia, President Donald Trump’s summit with his Chinese counterpart Xi Jinping enters its final day, with the topic of Taiwan in focus.
Data for the region on the docket for release Friday includes producer prices for Japan, gross-domestic product for Malaysia and Hong Kong, and unemployment for India. Markets are closed in Indonesia.
Bets that corporate earnings will keep powering ahead have offset worries that higher energy costs could fuel inflation and weigh on consumer confidence. First-quarter S&P 500 profits likely grew about 27% from a year ago, marking a sixth straight quarter of double-digit expansion, according to data compiled by Bloomberg Intelligence.
It’s clear that Corporate America has become very skilled at adapting to a wide range of economic environments, according to Clark Bellin at Bellwether Wealth. For investors who missed the opportunity to put new money to work during the war-driven slide in March, he says: “It’s not too late.”
“Stocks are still climbing the wall of worry, and we don’t think there is euphoria in markets just yet,” Bellin noted. “In fact, there is still plenty of skepticism, which suggests this bull market has more room to run.”
Also helping sentiment was the relative stability in oil prices. US President Donald Trump signaled China is willing to support negotiations with Iran, as he pushes for a diplomatic resolution to end the war and reopen the Strait of Hormuz.
Elsewhere, the pound fell as Andy Burnham secured a path to challenge Keir Starmer for the UK prime minister’s job, after a Member of Parliament quit to give the Greater Manchester mayor a run at his seat in the House of Commons. Bitcoin topped $80,000 after the Senate Banking Committee advanced a landmark US digital asset market structure bill.
