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The key takeaways from the last 24 hours

ASX nears record high as banks and energy stocks rally

The Australian share market closed just shy of its all-time high on Wednesday, buoyed by strength in financial and energy stocks and optimism around U.S. economic resilience. The S&P/ASX 200 Index rose 0.9 per cent, or 75.1 points, to finish at 8541.8, just 14 points below its record close set in February. Nine of the 11 sectors advanced, with the broader All Ordinaries Index also gaining 0.9 per cent. The rally followed a strong session on Wall Street, where job openings unexpectedly rose to 7.4 million in April, reinforcing investor confidence in labour market stability and heightening expectations for a soft landing and potential rate cuts.

Commonwealth Bank of Australia (ASX: CBA) led financials higher, gaining 0.9 per cent to a record $181.10 and surpassing $300 billion in market capitalisation. Other major banks joined the advance, with Westpac Banking Corporation (ASX: WBC) up 1.5 per cent despite ASIC filing legal action against its RAMS unit. Mining names also rallied, as iron ore held near $US95 per tonne—BHP Group Limited (ASX: BHP) rose 1 per cent to $37.95, while Fortescue Limited (ASX: FMG) added 1.6 per cent to $15.26. The energy sector was the top performer, driven by Woodside Energy Group Ltd (ASX: WDS), which climbed 2.9 per cent to $22.80 as Brent crude extended its gains above $US65.

Stocks in focus

Zip Co Limited (ASX: ZIP) was the day’s best performer, soaring 13.6 per cent to $2.21 amid a broader recovery in beaten-down tech names. Uranium stocks surged after Meta Platforms Inc. (NASDAQ: META) highlighted nuclear energy as key to powering AI—Paladin Energy Limited (ASX: PDN) rose 9.8 per cent to $6.49, and Deep Yellow Limited (ASX: DYL) gained 5.9 per cent to $1.35.

On the downside, Mayne Pharma Group Limited (ASX: MYX) fell 5.3 per cent to $4.48 after U.S.-based Cosette Pharmaceuticals Inc. withdrew its $672 million takeover bid. IDP Education Limited (ASX: IEL) extended losses, down another 2.6 per cent to $3.78 following Tuesday’s sharp selloff. PointsBet Holdings Limited (ASX: PBH) jumped 10.6 per cent to $1.20 after a fresh takeover bid from Mixi Inc., countering an earlier offer from Betr, which slid 1.4 per cent to 35 cents.

Wall Street stalls as weak economic data fuels rate cut hopes

U.S. equities ended mixed on Wednesday, 4 June 2025, as disappointing economic data tempered recent optimism. The S&P 500 Index (INDEXSP: .INX) was nearly unchanged, edging up 0.01 per cent to 5,970.81, while the Dow Jones Industrial Average (INDEXDJX: .DJI) declined 0.2 per cent to 42,427.74. Conversely, the Nasdaq Composite Index (INDEXNASDAQ: .IXIC) gained 0.3 per cent to 19,460.49, supported by strength in technology stocks. The market’s subdued performance followed weaker-than-expected reports on private-sector hiring and services activity, raising concerns about the economy’s momentum and increasing speculation about potential interest rate cuts by the Federal Reserve.

In corporate news, Hewlett Packard Enterprise Company (NYSE: HPE) surged 6 per cent after reporting strong quarterly earnings, while CrowdStrike Holdings, Inc. (NASDAQ: CRWD) fell 5.8 per cent due to a weaker-than-expected revenue forecast. Tesla, Inc. (NASDAQ: TSLA) declined 3.5 per cent amid concerns over sales in China and Germany. Broadcom Inc. (NASDAQ: AVGO) gained 1.7 per cent ahead of its earnings report, and ON Semiconductor Corporation (NASDAQ: ON) rose 6.1 per cent on signs of market recovery. Chipotle Mexican Grill, Inc. (NYSE: CMG) advanced 4.2 per cent, outperforming competitors. Meanwhile, Dollar Tree, Inc. (NASDAQ: DLTR) dropped 8.4 per cent despite beating earnings forecasts, as it faces margin pressures from tariffs.

Market movements

The key takeaways from the last 24 hours

What turmoil, says Commonwealth Bank of Australia?

The local market headed lower as investors weighed concerns about the escalating conflict in the Middle East, but the negative sentiment was not able to put a dent in the rise of Commonwealth Bank of Australia (ASX: CBA). The benchmark S&P/ASX 200 Index (ASX: XJO) gave up 30.6 points, or 0.4 per cent, to 8,474.90 points on Monday; and the broader All Ordinaries Index (ASX: XAO) lost 35.5 points, also 0.4 per cent, to 8,688; but Commonwealth Bank of Australia (ASX: CBA) gained another $1.82, or 1 per cent, to $184.35 – after setting a new intra-day record at $184.41. Offshore investors can’t seem to get enough of the nation’s biggest bank. Not all of the other big banks rode on Commonwealth Bank of Australia (ASX: CBA)’s coat-tails: Westpac Banking Corporation (ASX: WBC) put on 21 cents, or 0.6 per cent, to $33.42; but Australia and New Zealand Banking Group Limited (ASX: ANZ) eased 18 cents, or 0.6 per cent, to $28.21; and National Australia Bank Limited (ASX: NAB) softened 3 cents, to $38.88. Elsewhere in the industrial world, Qantas Airways Limited (ASX: QAN) slipped 19 cents, or 1.9 per cent, and global logistics giant Brambles Limited (ASX: BXB) gave up $1.23, or 5 per cent, to $23.33. Adairs Limited (ASX: ADH) sank 53 cents, or 20.5 per cent, to $2.05 after warning that full-year earnings would come in below last year’s. It said that while stronger promotional activity had boosted sales, it would dent margins. The news spooked investors in rival retailer Temple & Webster Group Limited (ASX: TPW), which shed 48 cents, or 2.3 per cent, to $20.87; JB Hi-Fi Limited (ASX: JBH)fell 30 cents, or 0.3 per cent, to $108.40; but furniture heavyweight Nick Scali Limited (ASX: NCK) advanced 19 cents, or 1 per cent, to $18.33.

Resources mostly lower

In the energy sector, Santos (ASX: STO)  added one per cent, while Woodside (ASX: WDS) was flat as Brent crude rose $US2 over the Australian session to over $US78 a barrel, near its highest level since late January. In big mining, BHP Group Limited (ASX: BHP) retreated 57 cents, or 1.6 per cent, to $35.64; Rio Tinto Limited (ASX: RIO) slipped 34 cents, or 0.3 per cent, to $101.83; and Fortescue Ltd (ASX: FMG) walked back 15 cents, or 1 per cent, to $14.54. Elsewhere in resources, gold miner West African Resources Limited (ASX: WAF) gained 4 cents, or 1.8 per cent, to $2.21; fellow gold producer Newmont Corporation (NYSE: NEM) lifted $1.07, or 1.2 per cent, to $90.37; North American-based Capstone Copper Corp. (TSE: CS) gained 12 cents, or 1.4 per cent, to $8.57; and Namibia-based uranium producer Paladin Energy Limited (ASX: PDN) advanced 6 cents, or 0.8 per cent, to $7.42. But at the other end of the spectrum, gold miner Genesis Minerals Limited (ASX: GMD) dropped 18 cents, or 3.9 per cent, to $4.43; coal producer Whitehaven Coal Limited (ASX: WHC) lost 20 cents, or 3.5 per cent, to $5.57; gold miner Northern Star Resources Limited (ASX: NST) fell 64 cents, or 3.1 per cent, to $19.88; fellow goldie Capricorn Metals Ltd (ASX: CMM) shed 32 cents, or 3 per cent, to $10.20; Ramelius Resources Limited (ASX: RMS), also a gold miner, leaked 8 cents, or 3 per cent, to $2.58; Canadian-based Champion Iron Limited (ASX: CIA) slid 12 cents, or 3 per cent, to $3.95; and Indonesia-based nickel producer Nickel Industries Limited (ASX: NIC) lost 2 cents, or 2.8 per cent, to 70 cents.

US markets rally, but big news comes after close

Overnight, US markets rallied as Iran did not close the Strait of Hormuz, a crucial oil shipping route; also, prospects of the United States Federal Reserve cutting interest rates as early as July contributed to the upbeat mood. The market also shrugged off Iranian missile attacks on US bases in Qatar and Iraq, which did not cause any reported casualties, mainly because Iran gave the US advance notice of the missile strikes. Despite the attack, the US markets moved higher, with the broad S&P 500 Index (NYSEARCA: SPY) gaining 57.33 points, or 1 per cent, to 6,025.17; the blue-chip Dow Jones Industrial Average (INDEXDJX: DJI) adding 374.96 points, or 0.9 per cent, to 42,581.78; and the tech-heavy Nasdaq Composite Index (NASDAQ: IXIC) rising 183.57 points, also up 0.9 per cent, to 19,630.98. Bonds also rallied, with the US 10-year treasury trading 4 basis points lower at 4.34 per cent and at the short end, the two-year yielding 3.85 per cent, down 6 basis points. The major impact of Middle East events was felt in the oil price, which fell 7 per cent after Iran’s subdued response, and restraint on the Strait of Hormuz. After trading closed, US President Donald Trump announced an imminent ceasefire between Israel and Iran sent stock futures climbing, with Dow Jones Industrial Average (INDEXDJX: DJI) and S&P 500 Index (NYSEARCA: SPY) futures up about 0.4 per cent, and Nasdaq Composite Index (NASDAQ: IXIC) futures up about 0.6 per cent.

Market movements

The key takeaways from the last 24 hours

Commonwealth Bank flies ever closer to the sun

With investors on the sidelines, waiting to see whether the fragile cease-fire between Israel and Iran will hold, there was not much in the way of index movement in the Wednesday session on the Australian Securities Exchange (ASX), with the benchmark S&P/ASX 200 Index (ASX: XJO) closing up 3.7 points at 8,559.20, and the broader All Ordinaries Index (ASX: XAO) accruing 5.1 points to 8,779. The ‘story’ for the day was Commonwealth Bank of Australia (ASX: CBA) hitting yet another record high, gaining $3.27, or 1.7 per cent, to $191.40. The stock is now up almost 25 per cent in 2025 so far, and trades at more than 30 times expected FY26 earnings, making it arguably the most expensively rated bank in the world. The big four Australian banks normally trade on about 12–13 times earnings. Of its peers, Australia and New Zealand Banking Group Limited (ASX: ANZ) lifted 50 cents, or 1.8 per cent, to $29.10; National Australia Bank Limited (ASX: NAB) picked up 30 cents, or 0.8 per cent, to $40.05; and Westpac Banking Corporation (ASX: WBC) added 25 cents, or 0.7 per cent, to $34.54.

Newly refloated airline Virgin Australia Holdings Limited (ASX: VGN) followed its strong debut yesterday—when it rose 11.4 per cent above the $2.90 issue price—with a gain of 11 cents, or 3.4 per cent, to $3.34. Equipment-financier and consumer buy-now-pay-later company Humm Group Limited (ASX: HUM) spiked 5.5 cents, or 11.5 per cent, higher to 54 cents after the company confirmed a takeover offer from the family office of its chairman, Andrew Abercrombie. Counter-drone-technology company DroneShield Limited (ASX: DRO) surged 35.5 cents, or 19.9 per cent, to $2.15 after being awarded its biggest-ever defence order — a package of three contracts worth $61.6 million, with the end-buyer being a European military customer. The contracts are for handheld detection and counter-drone systems and associated accessories. The order’s value is larger than the entire $57.5 million revenue DroneShield Limited (ASX: DRO) generated in 2024.

In economic news, the Australian Bureau of Statistics (ABS) reported a fall in annual trimmed-mean inflation in May to 2.4 per cent—its lowest level since November 2021—which led some bank economists to forecast a rate cut next month.

Resources screens mostly red

Among the big miners, BHP Group Limited (ASX: BHP) eased 37 cents, or 1 per cent, to $36.11; Rio Tinto Limited (ASX: RIO) slipped 64 cents, or 0.6 per cent, to $104.30; and Fortescue Metals Group Limited (ASX: FMG) gave up 35 cents, or 2.3 per cent, to $14.88. In energy, Woodside Energy Group Limited (ASX: WDS) surrendered 16 cents, or 0.7 per cent, to $24.00 despite sealing a US$5.7 billion deal over its Louisiana LNG project, while Santos Limited (ASX: STO) lost 9 cents, or 1.2 per cent, to $7.57.

In coal, Whitehaven Coal Limited (ASX: WHC) walked back 12 cents, or 2.2 per cent, to $5.45; New Hope Corporation Limited (ASX: NHC) shed 10 cents, or 2.6 per cent, to $3.75; and Stanmore Resources Limited (ASX: SMR) fell 9 cents, or 4.7 per cent, to $1.83. Mineral Resources Limited (ASX: MIN), which mines lithium and iron ore, slipped $1.28, or 6 per cent, to $20.18; lithium producer Pilbara Minerals Limited (ASX: PLS) lost 4 cents, or 3.1 per cent, to $1.25; and diversified miner South32 Limited (ASX: S32) eased 8 cents, or 2.7 per cent, to $2.84.

In gold, Capricorn Metals Limited (ASX: CMM) fell 49 cents, or 4.7 per cent, to $9.90; Genesis Minerals Limited (ASX: GMD) softened 18 cents, or 4 per cent, to $4.34; Perseus Mining Limited (ASX: PRU) slid 12 cents, or 3.4 per cent, to $3.37; and Northern Star Resources Limited (ASX: NST) gave up 52 cents, or 2.6 per cent, to $19.28. Green arrows were rare on the resources screens, but Namibia-based uranium producer Paladin Energy Limited (ASX: PDN) firmed 26 cents, or 3.5 per cent, to $7.75; Capstone Copper Corp. (TSX: CS) gained 9 cents, or 1 per cent, to $8.95; Canadian-based uranium project developer NexGen Energy Ltd. (ASX: NXG) advanced 8 cents, or 0.8 per cent, to $10.42; and gold miner Gold Road Resources Limited (ASX: GOR) lifted 2 cents, or 0.6 per cent, to $3.33.

White House, Fed differ on rate cuts

In the US, tensions in the Middle East appeared to be calming, and investors are preparing for May’s personal-consumption-expenditures price-index reading, which will be released on Friday. The broad S&P 500 Index (INDEXSP: SPX) finished Wednesday’s session flat, minutely lower at 6,092.16, while the 30-stock Dow Jones Industrial Average (INDEXDJX: DJI) slid 106.59 points, or 0.3 per cent, to 42,982.43; but the Nasdaq Composite Index (NASDAQ: IXIC) appreciated 61.02 points, or 0.3 per cent, to 19,973.55, edging closer to a new record. The Nasdaq was powered by chipmaker NVIDIA (NASDAQ: NVDA), which jumped 4.3 per cent, touching a record high and lifting its market capitalisation to US$3.75 trillion, making it the world’s most valuable company.

Federal Reserve Chair Jerome Powell said this week that the central bank’s preferred inflation measure is likely to rise to 2.3 per cent, while the ‘core’ figure, which excludes food and energy, is expected to tick up to 2.6 per cent from 2.5 per cent in April. However, Powell stressed that the central bank is committed to keeping inflation under control in the face of “uncertain” effects of Trump’s tariffs on the economy: while the White House is demanding rate cuts, the Federal Reserve chair is determined to wait to see the impact on inflation—rate-cut decisions will be based on that.

Market movements

The key takeaways from the last 24 hours

The key takeaways from the last 24 hours

The Australian sharemarket’s benchmark index, the S&P/ASX 200 Index (ASX: XJO), notched its sixth winning week out of the past seven on Friday, finishing the week up 0.1 per cent after a rally on Tuesday following the Iran-Israel ceasefire. With one more day of trading left in the 2025 financial year, the S&P/ASX 200 Index (ASX: XJO) is on track to deliver an annual return of 13.9 per cent, including dividends.

However, Friday was a down day, with the benchmark S&P/ASX 200 Index (ASX: XJO) finishing Friday down 36.6 points, or 0.4 per cent, at 8,514.2, while the broader All Ordinaries Index (ASX: XAO) dropped 30 points, or 0.3 per cent, to 8,743.7.

The market was led by the materials sector, which rose 2.3 per cent, as iron ore prices lifted to US$94.50 a tonne.

BHP Group Limited (ASX: BHP) gained $1.41, or 3.9 per cent, to $108.97; Rio Tinto Limited (ASX: RIO) accrued $4.78, or 4.6 per cent, to $108.97; and Fortescue Ltd (ASX: FMG) added 53 cents, or 3.6 per cent, to $15.46.

Big banks come off

Each of the big four banks finished lower, with Commonwealth Bank of Australia (ASX: CBA) sliding $5.35, or 2.8 per cent, to $185.36; Westpac Banking Corporation (ASX: WBC) giving up 67 cents, or 1.9 per cent, to $33.90; Australia and New Zealand Banking Group Limited (ASX: ANZ) losing 54 cents, or 1.8 per cent, to $29.20; and National Australia Bank Limited (ASX: NAB) easing 63 cents, or 1.6 per cent, to $39.26.

The big industrials news was plumbing supplies giant Reece Limited (ASX: REH) plunging $3.24, or 18.7 per cent, to $14.12, giving up two-and-a-half years of gains. The company said that it expected to earn between $548 million and $558 million this financial year, down from $681 million it made in the 2024 financial year, and well below the $580 million the market was expecting.

US indices on track for strong June

On Wall Street on Friday, the broad S&P 500 Index (NYSE: SPX) touched its first new high since February, marking a 23 per cent rally from the depths of April’s tariff-induced sell-off.  At its low in April, the S&P 500 was down nearly 18 per cent for 2025, but the index has taken just 89 trading days to to regain the lost ground. That makes it the US benchmark’s quickest recovery back to a record close, after a decline of at least 15 per cent, in its history, according to Dow Jones Market Data.

The S&P 500 Index (NYSE: SPX) gained 32.05 points, or 0.5 per cent, at 6,173.07, surpassing its previous record of 6,147.43. At its low in April, the S&P 500 Index (NYSE: SPX) was down nearly 18 per cent for the year when global trade and tariff tensions spooked the market.

The technology-focused Nasdaq Composite Index (NASDAQ: IXIC) also hit an all-time high, adding 105.54 points, or 0.5 per cent, to 20,273.46, while the blue-chip Dow Jones Industrial Average (NYSE: DJI) added 432.43 points, or 1 per cent, to 43,819.27.

For June, the S&P 500 Index (NYSE: SPX) is up 4.4 per cent, while the Nasdaq Composite Index (NASDAQ: IXIC) has surged nearly 6.1 per cent, and the Dow Jones Industrial Average (NYSE: DJI) has put on about 3.7 per cent.

Market movements

The key takeaways from the last 24 hours

Market movements

The key takeaways from the last 24 hours

Market movements

The key takeaways from the last 24 hours

Market movements

The key takeaways from the last 24 hours

Market movements

The key takeaways from the last 24 hours

Australian banks retreat as ASX pauses rally

The ASX 200 Index (XJO) dropped -0.5% (-38.1 points) to close at 8348.7, almost wiping out the previous session’s gains, as banks and tech stocks led the sell-off. This pullback follows Wall Street’s sharpest drop in a month, with ten of the eleven local sectors finishing in the red. Commonwealth Bank of Australia (CBA) declined 1.3% to $172.72, while Macquarie Group (MQG) shed 2.2% to $205.54, as investors took profits following a recent rally. The All Ordinaries (XAO) index also lost 0.5%. According to MLC Asset Management’s Anthony Golowenko, the market is “taking a breather” after a strong rebound from early April, noting particularly strong recent gains in growth and technology stocks.

Resources, Tech Diverge as Gold Shines and Lynas Surges

Mining and tech stocks showed divergent performances, with gold producers surging on the back of a rising bullion price. Northern Star Resources (NST) climbed 5.4% to $20.25, and Newmont Corporation (NEM) gained 2.3% to $82.98. In contrast, the tech sector faltered: WiseTech Global (WTC) fell 2.3% to $98.74, Aristocrat Leisure (ALL) dropped 2.0% to $60.57, and Wesfarmers (WES) declined 1.2% to $83.09, citing deeper-than-expected losses in its lithium business. A notable standout was Lynas Rare Earths (LYC), which jumped 7% to $8.13 following a double upgrade from Morgan Stanley, which forecast significant demand upside tied to growth in AI-driven humanoid robotics. Meanwhile, Insurance Australia Group (IAG) rose 2.7% after the ACCC approved its takeover of RACQ Insurance. In corporate leadership news, Rio Tinto (RIO) announced CEO Jakob Stausholm will step down later this year.

US Markets Cautious Amid Fiscal Jitters and Bond Selloff

US equity markets finished mixed as investors digested President Trump’s newly passed tax-and-spending bill, which could significantly expand the national deficit. The S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) closed slightly lower, while the Nasdaq Composite (IXIC) managed a 0.3% gain. The Congressional Budget Office estimates the bill will add nearly $4 trillion to the debt, raising the total to $36 trillion and triggering a surge in bond yields — with the 30-year Treasury touching 5.14%, its highest since 2023. Energy and utilities underperformed, dragged down by a 37% plunge in Sunrun (RUN) shares, while communication services led gains. Despite macro uncertainty, the S&P Global Composite PMI improved to 52.1 in May, indicating moderate expansion, even as housing and labour data painted a more mixed economic picture.

Market movements