The key takeaways from the last 24 hours

Australian banks and resources lift  

The S&P/ASX 200 Index (ASX: XJO) climbed 0.5 per cent, gaining 43.5 points to close at 8386.8 – just 2 per cent below its record high set in February. Financial stocks led the charge, with Commonwealth Bank of Australia (ASX: CBA) hitting a record high during early trade and closing up 1.5 per cent at $174.98. National Australia Bank Limited (ASX: NAB) rose 1.2 per cent to $37.64, while Westpac Banking Corporation (ASX: WBC) edged 0.2 per cent higher amidst news it is preparing to cut over 1500 jobs. Defensive sectors also gained ground.

In utilities, Origin Energy Limited (ASX: ORG) advanced 1 per cent to $11.14, and New Zealand-listed Contact Energy Limited (ASX: CEN) climbed 3.4 per cent to $8.57. Healthcare names such as ResMed Inc (ASX: RMD) and Fisher & Paykel Healthcare Corporation Limited (ASX: FPH) rose 4 per cent to $38.65 and 3.1 per cent to $33.84 respectively. Energy shares tracked the global rise in oil prices, which were lifted by reports of potential Israeli action against Iranian nuclear facilities. Woodside Energy Group Ltd (ASX: WDS) and Santos Limited (ASX: STO) each gained over 1 per cent, closing at $21.75 and $6.45, respectively.

Treasury volatility and fiscal fears weigh on Wall Street

US markets declined sharply on Wednesday amid a spike in long-term Treasury yields and mounting fiscal concerns. The S&P 500 Index (NYSE: SPX) fell 1.6 per cent, the Nasdaq Composite Index (NASDAQ: IXIC) dropped 1.3 per cent, and the Dow Jones Industrial Average (NYSE: DJI) lost 817 points, following a weak $16 billion auction of 20-year bonds that pushed the 30-year yield to 5.08 per cent – its highest since 2023. Worries that a proposed tax-and-spend bill could inflate the US deficit added to pressure on risk assets. Retail earnings disappointed, with Target Corporation (NYSE: TGT) down 5.2 per cent after cutting guidance and flagging weaker demand, while Lowe’s Companies Inc. (NYSE: LOW) and TJX Companies Inc. (NYSE: TJX) also declined. UnitedHealth Group Incorporated (NYSE: UNH) sank 5.7 per cent on reports of controversial payments to nursing homes. In contrast, Alphabet Inc. (NASDAQ: GOOGL) rose 3 per cent on optimism around new AI investments. A weakening US dollar and developments from the G7 summit further added to market uncertainty.

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