US stocks edge higher, extending rebound
US equity indices rose more than one percent on Monday, essentially recovering Friday's losses that had followed a downcast American jobs report.
The jump comes as markets price in a September Fed interest rate cut and eye as many as two additional cuts later this year.
About 30 minutes into trading, the Dow Jones Industrial Average was flat at 44,179.97.
Wall Street springs higher after Friday's tumultuous selloff
The broad-based S&P 500 added 0.1 percent at 6,338.41, while the tech-rich Nasdaq Composite Index climbed 0.3 percent to 21,124.51.
Tuesday's modest market advance made sense in light of unresolved talks with key trading partners China, Canada and Mexico, said Art Hogan of B. Riley Wealth Management.
'I think investors are waiting for better news on that front, but not panicking yet,' Hogan said.
'It's going to be impossible to really get a good read on what's the ultimate tariff level' across the board absent deals with those important partners, he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Australia, NZ dollars hit one-week highs amid US dollar malaise
SYDNEY: The Australian and New Zealand dollars hit one-week highs on Thursday as their U.S. counterpart felt the heavy weight of rate cut bets, growth worries and tariff jitters, although stiff chart resistance loomed. The two also found some support from better risk appetite led by global stocks and from still strong Chinese trade data that showed exports beat forecasts in July as manufacturers made the most of a fragile tariff truce between Beijing and Washington. The Aussie edged up 0.2% at $0.6516, the highest in a week, having gained 0.5% overnight. It is well off a six-week low of $0.6419 but only back to the middle of the recent trading range between 64 cents and 66 cents. The kiwi dollar rose 0.3% to a one-week top of $0.5944, after rising 0.4% overnight. Major resistance lies at $0.6059 and $0.6120. Overnight, the dollar took another tumble from rising prospects of sooner and deeper Fed rate cuts. Fed Governor Lisa Cook said July jobs data was 'concerning' and Minneapolis Fed President Neel Kashkari said the central bank may need to respond to a slowing economy. Investors are closely watching Trump's pick to fill a coming vacancy on the Fed's Board of Governors and candidates for the next chair of the central bank for the impact on monetary policy. Fed funds futures are now pricing in a 94% probability of a 25 basis point cut from the Fed in September, according to the CME Group's FedWatch Tool. In total, traders see 60.5 basis points in cuts this year. Analysts at the National Australia Bank expect the Australian dollar to appreciate to 70 cents, but after a 2.4% fall in July, they revised their forecasts lower to 66 cents by September and 68 cents by December. 'Still pivotal to our weaker USD view is that the economy is in the midst of a cyclical downturn, with US growth converging towards the rate experienced in other major developing countries, extinguishing the U.S. economy's 'exceptionalism'.' Also aiding the Aussie a little is local data that showed Australia's surplus on goods trade rebounded sharply in June as exports of gold and coal shot higher. The Reserve Bank of Australia will meet next week and is widely expected to cut interest rates by a quarter-point to 3.6% on Tuesday, after skipping a chance to move last month in rare dissent. 'We also expect the 'vote split' to disappear at this meeting, with a 9-0 vote for a 25bp cut,' said Phil Odonaghoe, an economist at Deutsche Bank.
Business Recorder
2 hours ago
- Business Recorder
Australia shares slip from record peak as banks drag
Australian shares were muted on Thursday, slipping from a record peak hit in the previous session as losses in banks weighed, while investors remained cautious awaiting policy decisions from the central banks in Australia and the U.S. in the near term. The S&P/ASX 200 index edged 0.02% lower to 8,841.70, as of 0053 GMT. The benchmark ended at a record closing level of 8,843.70 on Wednesday, after hitting an all-time high of 8,848.80 earlier in the session. Investors are betting on interest rate cuts by the Reserve Bank of Australia next week and the U.S. Federal Reserve in September respectively, with swaps pricing in more than 92% odds of a quarter-point rate reduction by the RBA on August 12. Analysts at Morgan Stanley expect the commentary at this meeting will be consistent with their forecast for continued easing towards more neutral settings. On the local bourse, financials fell 0.1%, with three of the country's 'Big Four' banks declining between 0.1% and 0.5%. Among these major lenders, Commonwealth Bank of Australia and Westpac are set to report their annual and third-quarter earnings, respectively, next week. Meanwhile, AMP fell 2.4% as the money manager's interim earnings missed estimates. Miners rose 0.2%, while gold stocks gained 1.4%. Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index was largely unchanged at 12,878.46. Analysts at Westpac echoed the larger market sentiment of expectations of a 25-basis-point rate cut from the Reserve Bank of New Zealand at their August policy meeting. 'It's unlikely that the RBNZ will call time on the easing cycle just yet as the economy is yet to decisively and sustainably turn,' they added. The RBNZ is set to announce its cash rate decision on August 20.
Business Recorder
5 hours ago
- Business Recorder
Gold gains as Trump doubles India tariffs, boosting safe-haven demand
Gold rose on Thursday, supported by renewed safe-haven demand after U.S. President Donald Trump slapped an additional 25% tariff on Indian imports, escalating trade frictions. Spot gold was up 0.4% at $3,380.76 per ounce as of 0247 GMT. U.S. gold futures gained 0.3% to $3,443.30. 'Trump has been dishing up fresh tariff threats which is keeping gold in the frame as a defensive play for investors,' Tim Waterer, chief market analyst at KCM Trade said. 'Gold is moving towards the doorstep of the psychological $3400, with risk-assets being kept off-balance somewhat by the constant tariff proclamations by the U.S. President.' Trump on Wednesday slapped an additional 25% tariff on imports of Indian goods, citing New Delhi's continued buying of Russian oil, deepening a trade rift between the two nations after talks reached a deadlock. The new import tax, effective 21 days after August 7, will raise duties on some Indian exports to as high as 50% - among the highest levied on any U.S. trading partner. Adding to gold's support, the dollar index hovered near a more than one-week low after surprisingly weak U.S. jobs data last week triggered bets for U.S. rate cuts in September. A weaker dollar makes gold less expensive for holders of other currencies. Traders are now pricing in a 94% chance of a 25-basis point rate cut next month, according to the CME Group's FedWatch Tool, opens new tab. The Federal Reserve may need to cut rates in the near-term in response to a slowing U.S. economy, even though it remains unclear whether tariffs will continue to push inflation higher, Minneapolis Fed President Neel Kashkari said. Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment. Elsewhere, spot silver rose 0.3% to $37.98 per ounce, platinum lost 0.7% to $1,324.26 and palladium shed 0.8% to $1,141.56.
