The S&P 500 closed at a record high on Friday, buoyed by a broad rally and a weaker-than-expected US jobs report that eased concerns about imminent interest rate hikes. The Dow Jones Industrial Average rose 0.3%, the S&P 500 gained 0.6%, and the tech-heavy Nasdaq surged 1.3%.
Atlassian Soars on Stellar Results
Shares of Australian software giant Atlassian jumped 35.3% to $US149.07 after the company reported quarterly results that far exceeded expectations. The stock's year-to-date loss narrowed to less than 4%. Bank of America upgraded Atlassian to "buy" from "neutral" and raised its price target to $US175 from $US105, citing the value of its workflow and collaboration data for AI agents. Oppenheimer maintained its "outperform" rating and lifted its price target to $US200 from $US110.
US Jobs Report Signals Cooling Labour Market
US employers unexpectedly cut 23,000 jobs in July, and hiring for the prior two months was revised down by a combined 103,000. The unemployment rate fell to 4.1% as labour force participation declined, and wage growth slowed. This report suggests the labour market is weaker than previously thought, which could prompt the Federal Reserve to delay interest rate increases.
Market expectations for a rate hike at the Fed's next meeting dropped to about 44%, down from 55% in the prior session and 67% a week ago, according to CME FedWatch. Bret Kenwell from eToro commented: "Inflation remains a concern, but today's data may give policymakers more reason to remain patient — and investors more room to lean into risk."
Market Highlights
- AUD +0.5% to US70.67¢
- Bitcoin +0.8% to $US64,930
- Gold +2.4% to $US4341.56 an ounce
- Brent oil -0.2% to $US82.29 a barrel
- Iron ore -1% to $US95.15 a tonne
- 10-year yield: US 4.65%, Australia 5.01%
SpaceX Surges After Lockup Expiry
Elon Musk's SpaceX rose 15.8% to $US133.11 a day after the expiry of the first of several share lockup restrictions following its record public offering in June.
Next Week's Agenda
Follow the August reporting season with dates for all major ASX companies. On Monday, Westpac releases a quarterly update; CBA and ANZ follow on Wednesday and Thursday. The Reserve Bank of Australia's policy meeting on Tuesday is expected to hold the cash rate at 4.35%. RBA officials will speak at events during the week. Overseas, the US July CPI data will be released on Wednesday. The RBA is the only major central bank meeting in August.
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