Nvidia pull back weighs on broader market

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The broader market index drifted lower on Friday as the recent Nvidia led rally finally looks to have run out of momentum.

The S&P 500 fell 0.16 per cent, while the Nasdaq closed 0.18 per cent lower. The Dow Jones managed to just tip into the green closing 0.04 per cent higher.

US markets saw the highest trading volumes as the expiry of stock options, stock index options and stock index futures options all occurred on the same day.

Turning to US sectors, the worst performer was Technology which closed down 0.84 per cent. The best performer was Consumer Discretionary which closed 1.02 per cent higher.

The energy sector was the best performing sector for the week closing up 2.3 per cent, outperforming the broader market amidst a jump in gasoline consumption and oil prices. Consumer discretionary was the next best performing sector for the week, adding 2 per cent. Utilities and Real Estate were the only negative sectors on the week, finishing down 0.6 per cent and 0.7 per cent, respectively.

On a weekly basis the S&P 500 hit an intraday record of 5,505.53 earlier in the week, and closed up 0.6 per cent for the week. The Nasdaq ended the week essentially flat. The Dow was the best performer of the major indexes adding 1.45 per cent for the week.

Nvidia shares finished down 3.2 per cent on the day as investors took some chips off the table. The stock is still up 155 per cent for the year.

Turning to local markets, all eyes this week will be focused on the Australian monthly consumer price index indicator to be released on Wednesday. Consensus expectations suggest an acceleration in the pace of annual inflation to 3.8 per cent in May, from 3.6 per cent in April. Investors remain concerned that further indications of stubborn inflation and price pressures may force the RBA to contemplate a further move up in rates. 


The SPI futures are pointing to a 0.2 per cent fall.


One Australian dollar at 7.30am was buying 66.40 US cents.


Gold lost 1.60 per cent. Silver dropped 3.87 per cent. Copper fell 2.09 per cent. Oil lost 0.69 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.42 per cent, Frankfurt lost 0.50 per cent, and Paris closed 0.56 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 0.09 per cent, Hong Kong’s Hang Seng lost 1.67 per cent while China’s Shanghai Composite closed 0.24 per cent lower.

On Friday, the Australian share market closed 0.34 per cent higher at 7,795.97.

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

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