Morning traders. Thanks loungers, especially @Ravgnome.
Outlook for the day: Positive following fresh highs on Wall Street as better-than-expected inflation data offset signals that the Federal Reserve may only cut rates once this year.
ASX futures: up 52 points or 0.67%
Overnight themes:
Two of Wall Street's three main stock benchmarks closed at records after market-friendly inflation figures countered "hawkish" signs on rates from the Federal Reserve.
The S&P 500 rallied 0.85%, closing above 5,400 for the first time despite a late wobble as the Fed left rates on hold but trimmed its projections to show just one cut this year.
A strong outlook from Oracle and gains for Nvidia, Apple and Tesla helped the Nasdaq soar 1.53%.
The Dow gave up early gains to finish 0.09% lower with more than two-thirds of component companies in the red.
The market opened sharply higher after annual headline inflation unexpectedly slowed to 3.3% last month from 3.4% in April. The consumer price index for May was unchanged, beating expectations for an increase of 0.1%.
Treasury yields declined after the inflation report as traders priced in an increased possibility of a September rate cut. Gold and silver rebounded as the US dollar retreated.
The market gave up some of its early gains late in the session after the Fed's "dot plot" of economic projections showed most policy-makers now expect just one rate cut this year, down from three cuts at the previous meeting. The shift in thinking followed a run of "hotter-than-expected" inflation reports this year.
“The CPI neutralized the hawkish Fed. Most market participants believe the economy is slowing, and they’re going to have to cut rates. So that’s why we think the market was shrugging off this really hawkish [Summary of Economic Projections] of just one cut” - ” Jay Hatfield, founder of InfraCap (per CNBC).
Oracle surged 13.32% after surprising the market by forecasting double-digit revenue growth next year. Apple added to Tuesday's strong gains.
Tech was comfortably the best of the sectors, rising 2.46% to a new high. Next-best were industrials +0.93% and consumer discretionary +0.84%.
Drags included energy -1.09%, consumer staples -1% and utilties -0.67%.
Pre-Fed weakness in the greenback helped copper bounce off a seven-week low. Benchmark copper rallied 1.92% in London.
Key events today:
May jobs report - 11.30 am AEST (expected: +30,500 jobs; unemployment 4%)
US wholesale inflation (PPI) - tonight
S&P 500: up 46 points or 0.85%
Dow: down 35 points or 0.09%
Nasdaq: up 265 points or 1.53%
Dollar: up 0.86% to 66.64 US cents
Iron ore (Dalian): down 0.79% to US$111.88
Brent crude: up 68 US cents or 0.83% to US$82.60
Natural gas (US futures): down 3.31% to US$3.03
Gold: up US$28.20 or 1.39% to US$2,354.80
Silver: up 43 US cents or 1.46% to US$29.73
NYSE Arca Gold Bugs: up 0.89%
Bitcoin: up 1.36% to US$68,115
Copper (LME): up 1.92% to US$9,946
Nickel (LME): down 0.58% to US$17,995
Uranium (spot price): up 2.95% to US$86
Lithium carbonate (China spot): down 0.97% to US$13,694
