Pre-Market Report – Thursday 1 August: ASX SPI up 17 - US markets jump - Meta Delivers -Fed Holds

US equities rallied overnight, driven by a surge in tech stocks and dovish commentary from Powell. The S&P 500 climbed 1.58%, with six out of 10 sectors advancing, led by tech and consumer cyclical stocks. The NASDAQ rose 2.64%, its second-biggest daily percentage gain since February, buoyed by gains in Nvidia, up 12.8%, on positive sales forecast by peer AMD, which also rose 4.34%. Philadelphia SE Semiconductor Index finished up nearly 7%. The Dow gained 99 points (+0.24%) up 455 points at best, and small caps Russell 2000 added 0.51%. For July, equities were mostly higher, with significant rotation out of tech, growth and momentum stocks and into small caps and value. Dow +4.41%, S&P 500 +1.13%, NASDAQ -0.75%, and Russell 2000 +10.10%. The Fed held rates at 5.25%-5.50% as expected. There were no explicit signals for a September rate cut. However, Powell said a rate cut could be on the table in September. US treasury yields tumbled. Both the 10Y and 2Y yields fell over ten basis points each. The US dollar fell 0.49% and Bitcoin eased 2.13%.

ASX to rise. SPI Futures up 17 points (+0.21%). 

COMMODITIES

• Oil gains nearly 3% on rising Mideast tension, falling US crude stockpiles.
• Gold climbs over 1% after Fed's Powell hints at early rate cut.
• Copper up on weaker dollar, hopes for Chinese stimulus.
• Tumbling lithium prices push Albemarle to fresh round of cost cuts.
• Chevron's proposed deal for Hess faces new delay over arbitration schedule.
• US oil demand set seasonal record in May, EIA data shows.

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