Tech stocks led the market back into positive territory on Thursday, following a sell-off triggered by inflation concerns earlier in the week. The S&P 500 closed up 0.74 per cent, with the Nasdaq leading the charge with a 1.68 per cent gain to reach a new record level. However, the Dow Jones underperformed, closing down 2.43 points.
Big tech names saw strong rallies, with Nvidia jumping 4.1 per cent, Amazon up 1.7 per cent, and Alphabet closing more than 2 per cent higher. Apple surged 4.3 per cent on reports of transitioning its Mac product line to AI chips.
Investors are now turning their attention to the upcoming reporting season, with major investment banks like Citigroup, Wells Fargo, and JP Morgan set to kick off the corporate earnings season on Friday. CarMax, one of the early reporters, fell more than 9 per cent after disappointing on both top and bottom lines.
In other news, New York Fed President John Williams stated that there is no need for a policy change in the near term. Treasury 10-year yields rose two basis points to 4.57 per cent. The euro dropped after the European Central Bank signaled a likely rate cut in June.
Tech was the best-performing sector in the US, while financials lagged behind. In Australia, key economic data releases and earnings reports are on the agenda for the day.
Overall, global markets showed mixed results, with European markets closing lower and Asian markets experiencing a mixed session. The Australian share market closed 0.44 per cent lower at 7,813.58.
(Source: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap)