ASX Opens Flat; Wall Street Steady Awaiting Fed Decision

The US stock market has shown signs of stability ahead of a key Federal Reserve decision. On a recent Wednesday, the S&P 500 remained mostly unchanged, while the Dow Jones added 58 points, marking a 0.1 percent increase. The Nasdaq composite also rose by 0.1 percent, reflecting a steady day on Wall Street.

ASX Opens Flat Amid Market Developments

Following the US trends, the Australian sharemarket was poised for a flat opening. Futures indicated a slight dip of 5 points early in the morning. In currency exchange, the Australian dollar stood at US69.87 cents.

Federal Reserve Decision Expected

The Federal Reserve has opted to maintain current interest rates. Market participants are closely watching comments from Chairman Jerome Powell, scheduled to speak at 6:30 AM AEDT. His remarks may provide insights into future economic policies.

Impact of Major Companies

The performance of Big Tech stocks has provided support to Wall Street. A notable report from ASML, a Dutch company, forecasted 2026 revenues above analysts’ expectations. This positive outlook has boosted confidence amid concerns of a potential bubble driven by the artificial intelligence surge.

• Nvidia stock rose 1.4 percent, contributing significantly to the S&P 500’s upward movement.
• ASML shares traded lower by 2.9 percent despite earlier gains.

Market Highlights

Other notable stock movements included:

• Seagate Technology surged by 19.3 percent after outperforming profit expectations.
• Starbucks gained 2.1 percent thanks to a revenue boost from a viral product.
• Elevance Health’s stock increased by 5.8 percent following stronger-than-expected earnings.
• Conversely, Amphenol’s shares fell 12.2 percent despite reporting solid growth.

Currency and Commodity Markets

In global currency markets, the US dollar found some stability against other currencies. This comes after it dropped to its lowest in nearly four years. The dollar’s decline has been attributed to political uncertainties and rising national debt.

In the bond market, yields on Treasury notes inched higher, with the 10-year Treasury yield rising to 4.26 percent.

Gold prices have experienced a notable surge, reaching $5,292.40 per ounce, amidst investors seeking safety amid economic uncertainty.

International Market Trends

Globally, stock indices exhibited varied performances. European markets faced declines, while Asia saw positive growth. Particularly, South Korea’s Kospi climbed 1.7 percent to a record high, buoyed by a significant increase in chip manufacturer SK Hynix’s stock.

As markets await further developments from the Federal Reserve, traders remain vigilant, anticipating potential changes to economic strategies that could affect both stock and currency markets.