The Overnight Report: Technology Roars

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            [3] => ((MIN))
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This story features CORONADO GLOBAL RESOURCES INC, and other companies.
For more info SHARE ANALYSIS: CRN
The company is included in ALL-ORDS

No commentary from Chris Weston today.

Major US indices surged to fresh record highs last night as shares in Nvidia, and other technology stocks, roared back, despite widespread concerns about elevated valuations and too much momentum following by investors young and old, freshmen and veterans.

The S&P500 rallied 1.2% and the Nasdaq Composite surged 2.0%. For the S&P500, overnight marked the index's 25th record closing high for the calendar year thus far.

Shares in chipmaker Nvidia jumped 5.2% pushing its market value over US$3trn, and surpassing Apple as the second largest company in the world. Only Microsoft (up 1.9% last night) is still in front. Other mega caps and chipmakers also enjoyed firm buying interest.

Corporate news was supportive of the renewed momentum revival. Hewlett Packard shares rose 10.7% after forecasting third quarter revenue above market expectations, helped by upbeat demand for its AI servers. Intel shares gained 2.5% after buyout firm Apollo Global Management agreed to purchase a 49% equity interest for US$11bn in a joint venture related to the chipmaker's manufacturing unit in Ireland.

Sector-wise, information technology (+2.6%), communication services (+1.5%), and consumer discretionary (+0.7%) sat atop of the leaderboard for the day's session.

The equal-weighted S&P500 rose 0.6%.

Renewed investor interest came on the back of falling Treasury yields. The 10-yr note yield settled five basis points lower at 4.29% and the 2-yr note yield fell four basis points to 4.73%. The ISM Non-Manufacturing Index for May showed some deceleration in the Prices Index from April.

The Bank of Canada delivered a widely anticipated -25bp rate cut, while suggesting this won't be a one-step move only. All eyes have now turned to Europe, where the ECB is also expected to cut by -25bp later today. European equities equally joined in the positive mood beforehand.

Economists at National Australia Bank point out Canada is now the third G10 nation, after Sweden and Switzerland, to initiate a monetary policy easing cycle.

The USD generally strengthened against most currencies, which -this time- did not deter crude oil futures and gold from rising. Industrial metals, however, continue to struggle. It was, however, noticed, USD strength weakened as the day matured.

The local market already had a positive session yesterday but the market is expected to see positive follow-through today.

On the calendar in Australia today:

-new housing lending data, plus weekly payroll jobs and the goods trade balance
-AGMs from Coronado Global Resources ((CRN)), Light & Wonder ((LNW)) and Northern Minerals ((NTU)) – the latter with a specific Chinese angle

Corporate news:

-Mineral Resources ((MIN)) is offloading equity in its pit-to-port haul road via an agreement with Morgan Stanley and analysts seem positive about it
-SkyCity ((SKC)) has issued a profit warning

Later on in the USA:

-NAB reports the May trade deficit is seen blowing out to -US$76.5bn vs -US$69.4bn in April – if so it will be the largest deficit since June 2022, with negative implications for Q2 GDP.

-Initial jobless claims have more market moving potential, ahead of Friday’s payrolls data even though the latter predates the claims survey date. Consensus is for little change on last week’s 219k (220k).

The Australian share market over the past thirty days…

For more detail go to FNArena's Australian Broker Call Report, which is updated each morning, Mon-Fri.

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here. (Subscribers can access prices on the website.)

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