The Australian sharemarket reversed course on Monday after a torrid fortnight, with miners and healthcare companies leading the gains despite US stocks closing lower last week.
Energy was the only sector in the red as heavyweights Woodside and Santos both declined. Utilities companies Mercury Nz and Meridian Energy were also weaker., followed by the worst week for big technology stocks since the COVID crash in 2020 dragging Wall Street on Friday across the finish line of another losing week.
Tech stocks in the S&P 500 broadly lost 7.3 per cent this week for their worst performance since March 2020 as some global giants reported discouraging trends. ASML, a Dutch company that’s a major supplier to the semiconductor industry, reported weaker-than-expected orders for the start of 2024, for example.
‘The giant sucking sound of optimism from the market is due to the Fed’s lack of foresight and irrational focus on where inflation has been instead of where it’s going.’Lower rates had earlier appeared to be on the horizon after inflation cooled sharply last year. But a string of reports this year showing inflation has remained hotter than expected has raised worries about stalled progress.