Global markets experienced a notable upsurge with major indices in the United States posting significant gains, driven by optimism in the technology and commodities sectors. The advance spurred a rally in the Australian dollar. At the same time, the Australian share market has received a boost with the strong leads from Wall Street’s stellar performance.
The S&P 500 rebounded, climbing 1.8%, to reach 5,767 points. At the same time, the Dow Jones Industrial Average was up 1.4%, to finish at 42,583 points. The Nasdaq had a very strong day, advancing by 2.2%, to close at 18,188 points. At the same time, the Australian dollar rose by 0.3%, to be worth 62.88 US cents. The ASX futures are pointing to a 0.5% increase, which is looking like setting up another very strong day for Australian shares.
Tech Stocks Lead the Charge
Technology stocks, many of whom thrive in low interest rate environments, accelerated the rally, adding greatly to the gains seen across the major indices. The tech-heavy index added 2.3%, showing investors’ increasing conviction in this sector. This increase goes hand-in-hand with greater optimism about the development and technology that is underway in our industry.
That boost helped lift the broader S&P 500, which rose 1.7% to set a record. This incredible growth speaks to the importance of technology in increasing market efficiency. For all of the challenges posed by technological change, investors are dying to get in on the companies that are ahead of the curve.
Commodities and Currency Movements
In the commodities market, spot gold was up 0.1%. It is currently trading at US$3,015 per ounce, reflecting an attitude of cautious optimism from investors. Brent crude oil increased 1.3% to US$73.10 per barrel, reflecting an improving demand picture.
The positive mood across commodity markets was bolstered by iron ore prices jumping 2.4%, to US$102.35 per tonne. Bitcoin soared by a remarkable 3.9%, lifting its price to US$88,392. This spike is really just a measure of the strong and growing interest that investors have in digital currencies.
European Markets Show Mixed Results
European markets were mixed despite the global optimism. FTSE falls just 0.1% to close at 8,638. At the same time, the EuroStoxx dropped over 0.1%, closing at 548 points. Even with these drops, the mood overall is generally positive across global markets, thanks in large part to positive performances elsewhere.
