Pre-Market Report – Wednesday 31 July: ASX SPI up 29 - Microsoft Results _ AMD Numbers - CPI and Retail Sales in Focus

Market Updates

Wall Street finished mixed as mega-cap tech stocks extended their losses in late trade as Microsoft’s results fuelled concerns over AI. The Dow advanced 203 points (+0.50%) with gains in major banks offsetting losses in Merck -9.81% and Procter & Gamble -4.84%. Dow up 326 points at best. Down 11 points at worst. S&P 500 fell 0.50%, while the S&P Equal Weight Index gained 0.46%, buoyed by gains in the financial and energy sectors. NASDAQ Composite tumbled 1.28%, and the NASDAQ 100 slid 1.38%, which is now down ~9% from its all-time high and tittering on the cusp of correction. Nvidia fell 7%, erasing $193bn from its market value dragging the Philadelphia semiconductor Index down 3.88%. Funds found their way to small caps. The Russell 2000 rose 0.35% as the rotation out of growth mega caps continues. In economics, the June JOLTS report showed job openings ticked lower, though higher than expected, and US July consumer confidence came in roughly in line with expectations though consumers were still largely concerned about inflation. Treasury yields eased, and the VIX jumped 6.57%.

ASX to rise on opening bell. SPI Futures up 29 points (+0.37%).
COMMODITIES

• Oil prices slide 1%, settle at 7-week low on China worries.
• Iron ore retreats further as key China economic meeting, strong global supply weigh.
• Aluminium hits 5-month low, copper down on risk-off sentiment.
• Gold climbs on rate cut hopes as Fed meeting looms.
• BP raises dividend as $2.8bn quarterly profit beats forecasts.
• OPEC+ likely to stick to output policy at Aug 1 JMMC meeting.

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