Wall Street ticks higher after May inflation data
Wall Street's main indexes have nudged higher as a cooler-than-expected inflation report calmed concerns around tariff-driven price pressures and fanned expectations for interest rate cuts.
Data showed consumer prices increased only marginally in May but inflation is expected to accelerate in the coming months due to the import tariffs of US President Donald Trump's administration.
Annually, headline inflation stood at 2.4 per cent, lower than the 2.5 per cent rise estimated by economists polled by Reuters.
"Longer term there's still concerns about Trump's tariffs being inflationary but this report was better than expected and it fuels hope that the Federal Reserve will be able to step in with rate cuts later on this year," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
Traders are pricing in 48 basis points of rate cuts by year-end, per data compiled by LSEG.
They are pencilling in a 57 per cent chance of a 25 bps cut in September, according to the CME Group's FedWatch tool.
The S&P 500 and Nasdaq also traded near record levels, with the S&P 500 about 1.6 per cent below all-time highs touched in February and the Nasdaq about 2.0 per cent below its record peaks reached in December.
A day after officials from the US and China agreed on a framework to put their tariff truce back on track, Trump said the US deal with China was done, with China to supply magnets and rare earth minerals.
Investors are awaiting more details from the two-day meeting and hoping for a lasting resolution to the trade tensions that have disrupted global markets for much of the year.
The US stock market has rallied in recent weeks, recovering from a slump in April sparked by Trump's "Liberation Day" tariffs.
In early trading on Wednesday, the Dow Jones Industrial Average rose 55.84 points, or 0.13 per cent, to 42,922.71, the S&P 500 gained 6.13 points, or 0.10 per cent, to 6,044.94 and the Nasdaq Composite gained 26.66 points, or 0.14 per cent, to 19,742.60.
Six of the 11 major S&P 500 sub-sectors rose, led by healthcare stocks with an about 0.4 per cent rise.
On the flip side, materials fell 0.7 per cent.
Among stocks, Tesla advanced 1.7 per cent after CEO Elon Musk said he regrets some of the posts he made last week about Trump, following an abrupt rift that has roiled the electric-vehicle maker's shares.
Software development platform provider GitLab dropped 10.2 per cent after reporting quarterly results.
Shares of videogame retailer GameStop fell 4.4 per cent after it reported a decline in first-quarter revenue.
Summit Therapeutics was down 1.9 per cent after brokerage Leerink Partners started coverage on the drug developer with an "underperform" rating.
Advancing issues outnumbered decliners by a 2.25-to-1 ratio on the NYSE and by a 1.32-to-1 ratio on the Nasdaq.
The S&P 500 posted 7 new 52-week highs and one new low while the Nasdaq Composite recorded 48 new highs and 19 new lows.
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- ABC News
Could Australia actually be better off under Trump's tariffs?
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The Advertiser
5 hours ago
- The Advertiser
New Middle East conflict sends jitters through market
Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents
The Advertiser
5 hours ago
- The Advertiser
Virat's next venture: Kohli backs new ten-pin league
The first edition of the World Bowling League (WBL), backed by cricket icon Virat Kohli and baseball star Mookie Betts, will roll out with six franchises competing in iconic locations early next year. The WBL is looking to transform a pastime for millions around the world into a cutting edge, made-for-TV experience via a heady mix of celebrity franchise owners, exotic locations and technological innovation. "It's an incredible sport which just hasn't been structured correctly for the past 50-60 years and everyone just dismisses it as a recreational activity," league chief Adi K. Mishra told Reuters. "We are going to launch with six franchises in the first quarter of next year. It's going to be a team of four - two male and two female bowlers. "We want to take two lanes and put them in iconic locations around the world - Hudson Yards in New York, Marina Bay Sands in Singapore, a variety of different locations in Dubai and India." The founder and CEO of sports tech firm League Sports Co did not go into detail about the format but said professional bowlers would compete in the core sport while celebrities would take part in auxiliary events, with teams collecting points throughout the season. Los Angeles Dodgers shortstop Betts bought the first announced franchise in May and the WBL pulled off another marketing coup when Kohli came on board as a strategic investor last month. Weaving complementary programming featuring celebrity bowlers like Betts and Kohli around the core sport would make it an irresistible proposition for broadcasters, said Mishra. "We already have many broadcasters lined up," he said. "A lot of them believe they can bring in other influencers and celebrities." Mishra and Kohli know each other through their joint ownership of a team in the E1 electric powerboat world championship, and the cricketer's fondness for bowling came as a pleasant surprise as the WBL was being in the planning stage. "Over the years, I've met a lot of celebs who happen to be closet bowlers," Mishra said. "We were speaking about various things about the team and it turned out that he has been bowling and watching it since he was 11-12. "That was a big surprise for me and we wanted him to be part of this. Hopefully we'll get him to bowl when he has more time for it." The first edition of the World Bowling League (WBL), backed by cricket icon Virat Kohli and baseball star Mookie Betts, will roll out with six franchises competing in iconic locations early next year. The WBL is looking to transform a pastime for millions around the world into a cutting edge, made-for-TV experience via a heady mix of celebrity franchise owners, exotic locations and technological innovation. "It's an incredible sport which just hasn't been structured correctly for the past 50-60 years and everyone just dismisses it as a recreational activity," league chief Adi K. Mishra told Reuters. "We are going to launch with six franchises in the first quarter of next year. It's going to be a team of four - two male and two female bowlers. "We want to take two lanes and put them in iconic locations around the world - Hudson Yards in New York, Marina Bay Sands in Singapore, a variety of different locations in Dubai and India." The founder and CEO of sports tech firm League Sports Co did not go into detail about the format but said professional bowlers would compete in the core sport while celebrities would take part in auxiliary events, with teams collecting points throughout the season. Los Angeles Dodgers shortstop Betts bought the first announced franchise in May and the WBL pulled off another marketing coup when Kohli came on board as a strategic investor last month. Weaving complementary programming featuring celebrity bowlers like Betts and Kohli around the core sport would make it an irresistible proposition for broadcasters, said Mishra. "We already have many broadcasters lined up," he said. "A lot of them believe they can bring in other influencers and celebrities." Mishra and Kohli know each other through their joint ownership of a team in the E1 electric powerboat world championship, and the cricketer's fondness for bowling came as a pleasant surprise as the WBL was being in the planning stage. "Over the years, I've met a lot of celebs who happen to be closet bowlers," Mishra said. "We were speaking about various things about the team and it turned out that he has been bowling and watching it since he was 11-12. "That was a big surprise for me and we wanted him to be part of this. Hopefully we'll get him to bowl when he has more time for it." The first edition of the World Bowling League (WBL), backed by cricket icon Virat Kohli and baseball star Mookie Betts, will roll out with six franchises competing in iconic locations early next year. The WBL is looking to transform a pastime for millions around the world into a cutting edge, made-for-TV experience via a heady mix of celebrity franchise owners, exotic locations and technological innovation. "It's an incredible sport which just hasn't been structured correctly for the past 50-60 years and everyone just dismisses it as a recreational activity," league chief Adi K. Mishra told Reuters. "We are going to launch with six franchises in the first quarter of next year. It's going to be a team of four - two male and two female bowlers. "We want to take two lanes and put them in iconic locations around the world - Hudson Yards in New York, Marina Bay Sands in Singapore, a variety of different locations in Dubai and India." The founder and CEO of sports tech firm League Sports Co did not go into detail about the format but said professional bowlers would compete in the core sport while celebrities would take part in auxiliary events, with teams collecting points throughout the season. Los Angeles Dodgers shortstop Betts bought the first announced franchise in May and the WBL pulled off another marketing coup when Kohli came on board as a strategic investor last month. Weaving complementary programming featuring celebrity bowlers like Betts and Kohli around the core sport would make it an irresistible proposition for broadcasters, said Mishra. "We already have many broadcasters lined up," he said. "A lot of them believe they can bring in other influencers and celebrities." Mishra and Kohli know each other through their joint ownership of a team in the E1 electric powerboat world championship, and the cricketer's fondness for bowling came as a pleasant surprise as the WBL was being in the planning stage. "Over the years, I've met a lot of celebs who happen to be closet bowlers," Mishra said. "We were speaking about various things about the team and it turned out that he has been bowling and watching it since he was 11-12. "That was a big surprise for me and we wanted him to be part of this. Hopefully we'll get him to bowl when he has more time for it." The first edition of the World Bowling League (WBL), backed by cricket icon Virat Kohli and baseball star Mookie Betts, will roll out with six franchises competing in iconic locations early next year. The WBL is looking to transform a pastime for millions around the world into a cutting edge, made-for-TV experience via a heady mix of celebrity franchise owners, exotic locations and technological innovation. "It's an incredible sport which just hasn't been structured correctly for the past 50-60 years and everyone just dismisses it as a recreational activity," league chief Adi K. Mishra told Reuters. "We are going to launch with six franchises in the first quarter of next year. It's going to be a team of four - two male and two female bowlers. "We want to take two lanes and put them in iconic locations around the world - Hudson Yards in New York, Marina Bay Sands in Singapore, a variety of different locations in Dubai and India." The founder and CEO of sports tech firm League Sports Co did not go into detail about the format but said professional bowlers would compete in the core sport while celebrities would take part in auxiliary events, with teams collecting points throughout the season. Los Angeles Dodgers shortstop Betts bought the first announced franchise in May and the WBL pulled off another marketing coup when Kohli came on board as a strategic investor last month. Weaving complementary programming featuring celebrity bowlers like Betts and Kohli around the core sport would make it an irresistible proposition for broadcasters, said Mishra. "We already have many broadcasters lined up," he said. "A lot of them believe they can bring in other influencers and celebrities." Mishra and Kohli know each other through their joint ownership of a team in the E1 electric powerboat world championship, and the cricketer's fondness for bowling came as a pleasant surprise as the WBL was being in the planning stage. "Over the years, I've met a lot of celebs who happen to be closet bowlers," Mishra said. "We were speaking about various things about the team and it turned out that he has been bowling and watching it since he was 11-12. "That was a big surprise for me and we wanted him to be part of this. Hopefully we'll get him to bowl when he has more time for it."
