Pre-Market Report – Tuesday 23 July: US Tech Rallies Before Results - SPI up 55

Market Updates

US equities rallied overnight, rebounding from their worst weekly performance since April. The Dow halted a two-day skid, rising 128 points (0.32%). Up 185 points at best. Down 65 points at worst. The S&P 500 and NASDAQ rose 1.08% and 1.58%, respectively, led by gains in the “Magnificent Seven”. Russell 2000 advanced 1.66%, and Wall Street's fear index, VIX, plummeted 9.75%. S&P 500 Tech sector gained 1.78%, topping sectoral gainers and breaking its four-day losing streak. Alphabet (+2.2%) is expected to report a ~14% rise in quarterly revenue, marking its fourth consecutive double-digit growth. Telsa jumped 5.1% despite reports that their Q2 margins are expected to hit a more than five-year low. US treasuries were muted. 10Y and 2Y yields inched higher 1.2bps and 0.4bps. USD Index eased 0.10% in quiet trade as the market digested US President Joe Biden’s decision to end his re-election.

ASX to rally at open. SPI Futures up 55 points (+0.70%).
COMMODITIES

• Oil drops as investors look past Biden exit, focus on weak fundamentals.
• Gold slips to over 1-week low as dollar firms, investors await more Fed cues.
• Iron ore edges lower as investors digest mixed signals from China.
• Aluminium slips to nearly four-month low on demand concerns.
• Oil market likely to be in surplus next year, Morgan Stanley says.
• US senators introduce bill to speed approvals of energy projects.
• Saudi Arabia's growth this year marred by lower for longer oil output.

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