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The local market spent the morning stabilising after yesterday’s selloff, with Nvidia’s earnings result tomorrow morning remaining in the focus. Strength across energy, gold and defensive names helped the market keep its head above water for most of the morning, until softness prevailed into the close as investors took risk off the table with a volatile session likely in store for tomorrow.
We are taking a 50%+ profit on a healthcare stock
The ASX200 was unceremoniously clobbered over 160-points on Tuesday, ending the brutal session at its lowest level in five months – the index has now fallen by more than 7% from its October high.
The ASX200 copped a heavy bout of selling today, sliding to a five-month low of 8444 as the market buckled under the weight of RBA inflation commentary this morning, and a thumping sell-off in tech as traders trimmed positions ahead of Nvidia’s make-or-break earnings after-market Thursday morning our time.
The ASX 200 managed to eke out a small gain on Monday after starting the session on the back foot. Buying crept in throughout the day, reversing an initial 0.5% drop to close marginally higher, helped by firm US futures. Tech and energy stocks led the gains through a relatively quiet session, which only saw 3% of the main board move by over 5%.
The local market looked set for another down day and its fifth straight in the red, before a strong midday rally turned sentiment around. After a ~200-point rout over the past week, the buy-the-dip mentality finally re-emerged as US futures rose, driving the index back into positive territory – albeit, only just.
Wall Street may have notched its worst day in over a month on Thursday, but one category of assets has fared far worse this week — meme stocks. One painful example is NuScale Power (SMR US), a popular stock in the US used to play the power generation buildout theme for AI data centres, which plummeted ~50% last week, extending its losses from mid-October.
The ASX 200 ended the week down 1.5% trading at its lowest level since July, with the vast majority of the damage unfolding on Friday. The week ended with the local market suffering its worst day in 10 weeks amid a global pullback in risk assets. Hawkish comments by Fed officials on Thursday night dialled back expectations that they would cut rates in December, sending rate-sensitive stocks lower. The tech, financial, and real estate sectors were the worst performers, while the materials and energy names again led the line, gaining 3.8% and 1.9%, respectively
The Australian market copped another heavy bout of selling today, with sentiment rattled by growing fears that interest rates in both the US and Australia aren’t coming down any time soon. The move follows Wall Street’s largest one-day fall in a month and caps the ASX’s worst week since March.
We are making two changes to the growth portfolio today.
