Apple surge pushes US markets to new highs

Market Reports

by Peter Milios

The S&P 500 and the Nasdaq Composite hit new highs as Apple shares surged on AI news.

The S&P 500 added 0.27 per cent to close at a new high 5,375.32. The Nasdaq rallied 0.88 per cent to also set a new level at 17,343.55. The 30-stock Dow Jones bucked the trend to close 0.31 per cent lower on the day.

The key news on Tuesday was the surge in Apple shares following the Company’s announcement on new AI features and operating systems that is likely to trigger a wave of iPhone upgrades. Nvidia saw investors rotate out of its stock and into Apple. Apple closed at a new record rising 7.26 per cent to $207.15 a share. Nvidia closed 0.71 per cent lower.

Attention will now shift to the Federal Reserve policy meeting which commenced Tuesday and will conclude on Wednesday US time and the May CPI number which is due out at 10.30pm AEST.

Investors were also encouraged by a well received US government sale of US $39 billion of bonds which raised hopes the Fed will pivot to rate cuts later this year. Demand was strong, with the bid/cover ratio of 2.67 being the highest since February 2022, the month before the start of the tightening cycle, according to Bloomberg.

Fed funds futures were indicating no chance of a cut at this week’s meeting or at the following one in July, according to CME’s FedWatch Tool.

Turning to US sectors, all sectors except for Tech and Communication Services closed lower overnight. Financials was the worst performer.

Turning to commodities, China's central bank halted its gold buying streak in May after 18 months, coinciding with a record rally in gold prices driven by safe-haven demand from March to May. Despite this pause, China's gold reserves remained unchanged at 72.80 million ounces at the end of May, following its status as the largest official sector buyer in 2023 with net purchases of 7.23 million ounces, as reported by the World Gold Council.


The SPI futures are pointing to a 0.5 per cent fall.


One Australian dollar at 7.20am was buying 66.06 US cents.


Gold has lost 0.02 per cent. Silver has dropped 2.15 per cent. Copper has fallen 0.74 per cent. Oil has gained 0.21 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.98 per cent, Frankfurt lost 0.68 per cent, and Paris closed 1.33 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei gained 0.25 per cent, Hong Kong’s Hang Seng fell 1.04 per cent while China’s Shanghai Composite closed 0.76 per cent lower.

Yesterday, the Australian share market closed 1.33 per cent lower at 7,755.38.

ALS Ltd (ASX:ALQ) is paying 19.6 cents 20 per cent franked
Tower Limited (ASX:TWR) is paying 2.3563 cents unfranked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.


The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?