ASX Stays Still After Flat Week on Wall Street, Awaiting Key Economic Data

Despite strong performances from major technology companies, Wall Street's S&P 500 index ended the week without any significant change. Investors are now looking to see if the Australian Securities Exchange (ASX) will mirror this flat trend, with ASX 200 futures indicating a similarly calm start.

Market participants are being cautious as they await crucial inflation and employment statistics later this week that could influence trading.

Market Overview

Currently, ASX 200 futures are steady at 8,237 points. The Australian dollar has seen a slight increase, trading up 0.3% at 66.20 US cents. Meanwhile, the S&P 500 closed flat at 5,808 points, and the Nasdaq gained 0.6%, reaching 20,352 points. Other international indices saw limited movement, with the UK’s FTSE down 0.3% and the EuroStoxx remaining stable at 519 points. In commodity markets, spot gold rose 0.2% to $US2,743 an ounce, while Brent crude increased by 2.3% to $US76.05 a barrel. Iron ore also saw a 1% rise to $US101.10 per tonne, and Bitcoin was up 1.5%, trading at $US67,730.

Upcoming Earnings Reports

This week is marked by a busy schedule of earnings reports in the US, featuring major tech companies. Key reports include:

• Monday: Phillips, Ford
• Tuesday: PayPal, BP, McDonald’s, Pfizer, Alphabet, Visa
• Wednesday: Caterpillar, Meta, Microsoft, Coinbase, Starbucks
• Thursday: Uber, Merck, Mastercard, Conoco Phillips, Amazon, Apple, Intel, Atlassian
• Friday: Chevron, Exxon Mobil

This busy reporting week coincides with heightened market activity as investors brace for the outcomes of the upcoming US presidential elections, alongside the much-anticipated inflation and jobs data.

Nvidia vs. Apple: A Market Battle

Even though Wall Street appeared stagnant on Friday, competition heated up among the tech giants. Nvidia briefly surpassed Apple to claim the title of the world's most valuable company, reaching a market value of $US3.53 trillion before Apple regained its position at $US3.52 trillion. By the end of the day, Nvidia’s stock subtly increased by 0.8%, resulting in a market valuation of $3.47 trillion, while Apple saw its shares rise 0.4%, securing its value at $3.52 trillion.

Market Reflections

Wall Street concluded the week with little movement overall. Although tech stocks such as Tesla, which climbed 3.4% after impressive electric vehicle sales forecasts, and Nvidia, also increased, the Dow Jones index dropped by 0.6% impacting the S&P 500, which ultimately closed flat. Concerns surrounding food safety incidents involving companies like McDonald’s weighed down on market sentiment.

Market volatility is expected as investors keep an eye on the political landscape and the upcoming economic data, which could lead to significant market movements. The fear index, known as the Vix Index, indicated a 7% increase, reflecting the cautious mood among traders.

As trading begins today, both local and international markets are anticipated to remain stable with minimal changes.

ASX, WallStreet, Earnings