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Investors flock back to tech stocks after strong economic data

PUBLISHED

2023-08-30

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The Nasdaq Composite climbed more than 1 per cent Tuesday, as investors flocked back to tech stocks in the final days of what’s been a difficult August for the market.

The tech-heavy index gained 1.74 per cent to close at 13,943.76. The S&P 500 climbed 1.45 per cent to close at 4,497.63 — its best day since June 2. The Dow Jones Industrial Average added 292.69 points or 0.85 per cent to finish the session at 34,852.67.

Chipmaker Nvidia led the charge of rising tech stocks with a gain of more than 4 per cent. Shares of Meta Platforms, Tesla, Apple and Microsoft all ended the day higher.

AT&T rose 3.9 per cent after Citi upgraded the stock and said the telecom giant would be able to afford its hefty dividend. Elsewhere, shares of Best Buy added 3.8 per cent after the retailer reported an earnings beat.

The 2-year Treasury yield tumbled as much as 16 basis points as consumer sentiment data came in softer-than-expected at 106.1. Economists polled by Dow Jones forecast a 116 reading. Elsewhere, the latest job openings and labour turnover survey showed a decline in open listings in July - another sign of a cooling economy.

Bitcoin jumps as Grayscale wins lawsuit against the SEC In a significant turn of events, the US Court of Appeals for the DC Circuit ruled that the SEC was wrong in denying investment giant Grayscale's request to convert its popular bitcoin trust GBTC into an ETF. Coinbase climbed 15 per cent.

In commodity news, in Q1/2023, Chilean mining costs surged 29 per cent YoY due to diminished ore quality, elevated expenses for wages, energy, and refinery fees, driven by lower ore grades and project delays.

The current El Niño event could worsen the impact of India's rice export ban and Russia's exit from the Black Sea grain deal on global food prices, potentially leading to inflation in emerging markets; starting in September, El Niño is expected to bring intense heat to parts of South Asia and Central America, along with heavy rainfall over the Andes.

Turning to US sectors, all closed higher overnight. Communication Services, Consumer Discretionary, and Tech all closed above 2 per cent.

And lastly, amid increasing financial pressure on China's real estate sector, Country Garden, one of the country's major private property developers, has asked for a 40-day extension on a maturing renminbi bond, reflecting the ongoing challenges despite recent government pledges of support. 

Futures

The SPI futures are pointing to a 0.7 per cent gain.

Currency

One Australian dollar at 7:20 AM was buying 64.77 US cents.

Commodities

Gold gained 0.94 per cent. Silver advanced 2.17 per cent. Copper added 1.24 per cent. Oil gained 1.32 per cent.

Figures around the globe

European markets closed higher. London’s FTSE gained 1.72 per cent, Frankfurt added 0.88 per cent, and Paris closed 0.67 per cent higher

Turning to Asian markets, Tokyo’s Nikkei added 0.18 per cent, Hong Kong’s Hang Seng gained 1.95 per cent while China’s Shanghai Composite closed 1.20 per cent higher.

The Australian sharemarket closed 0.71 per cent higher at 7,211

Ex-dividends

Bapcor (ASX:BAP) is paying 11.5 cents fully franked
Bell Financial Group (ASX:BFG) is paying 3 cents fully franked
Evolution Mining (ASX:EVN) is paying 2 cents fully franked
Humm Group (ASX:HUM) is paying 1 cent fully franked
KKR Credit Inc Fund (ASX:KKC) is paying 1.67 cents unfranked
McGrath (ASX:MEA) is paying 3.5 cents fully franked
Maxiparts (ASX:MXI) is paying 3.22 cents fully franked
Ooh!Media (ASX:OML) is paying 1.75 cents fully franked
Perpetual Cred Trust (ASX:PCI) is paying 0.6772 cents unfranked
Propel Funeral (ASX:PFP) is paying 6.9 cents fully franked
360 Capital Mortgage (ASX:TCF) is paying 3.5 cents unfranked
Telstra Group (ASX:TLS) is paying 8.5 cents fully franked
Ventia Services Group (ASX:VNT) is paying 8.31 cents 80 per cent franked
Wesfarmers (ASX:WES) is paying 103 cents fully franked

Dividends payable

Dexus (ASX:DXS)
Janus Henderson Group PLC (ASX:JHG)
HomeCo Daily Needs REIT (ASX:HDN)
HealthCo Healthcare and Wellness REIT (ASX:HCW)
US Student Housing REIT (ASX:USQ)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.


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