ASX set to drop, tech shares lead Wall Street decline
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The news: The Australian sharemarket is set to open lower after losses on Wall Street, where worries about rate cuts and corporate earnings weighed on mega cap stocks.
The numbers: Updated at 7:25am AEDT:
- ASX futures: down 15 points or 0.18% at 8,230 points
- Wall Street: Dow Jones down 0.97%, S&P 500 down 0.92, Nasdaq down 1.6%
- Europe: FTSE 100 down 0.58%, CAC 40 down 0.5%, DAX down 0.23%
- Spot gold: down 1.2% to USD2,715.94 per ounce
- Oil prices: Brent down 1.14% to USD75.17/ barrel, US WTI down 1.07% to USD70.97/bbl
- AUD: down 0.72% at 66.36 US cents
- Bitcoin: down 1.41% to USD66,430.68
The context: Benchmark 10-year US Treasury yields hit a three-month high as investors reassess the Fed rate-cut outlook for the next few months amid strong economic data and the upcoming election.
Rate-sensitive mega caps including Nvidia, Apple, Meta Platforms and Amazon all dropped, while corporate news put pressure on McDonald's, Coca-Cola and Boeing.
What to Watch: Quarterly results from Newmont, Fortescue Metals, Insignia and Brambles as well as annual general meetings for Fortescue, IAG, Challenger, Super Retail, Brambles, among others.
The source: Bloomberg
