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The Australian market is set for a modest rise on Thursday as the ASX200 futures contract pointed to a 0.2% increase at 8 a.m. AEST. Despite this, stocks in the U.S. had a challenging session, with the S&P 500 down 0.19%, the Dow Jones dropping 0.7%, and the Nasdaq closing flat. Investors were reacting to the Federal Reserve’s rate decisions and new housing market data.
Tech Stocks Make Waves in the U.S.
In the U.S., Micron Technology (NASDAQ:MU) surged by 14% in after-hours trading after reporting stronger-than-expected earnings and issuing a robust revenue forecast, driven by increased demand for artificial intelligence (AI). Similarly, Nvidia (NASDAQ:NVDA) rose by 0.7%, continuing its upward momentum.
Big Moves in Sports Betting Stocks
Sports betting stocks also saw significant action. Flutter Entertainment (LON:FLTR) reached an all-time high, jumping 8%, following the announcement of a US$5 billion share buyback plan and upgraded projections for the U.S. online gambling market. Other stocks in the sector, including DraftKings (NASDAQ:DKNG), followed suit, rising 5%.
Bank of America and Buffett’s Adjustments
Bank of America (NYSE:BAC) saw its shares dip 0.5% after Warren Buffett’s Berkshire Hathaway reduced its stake by 21.6 million shares, yielding around US$862 million. This move came as part of broader portfolio adjustments amid fluctuating market conditions.
Iron Ore Stocks in Focus on the ASX
ASX-listed iron ore stocks are expected to gain attention as iron ore prices climbed by 2% overnight. This increase comes on the back of China’s recent monetary stimulus efforts, sparking renewed optimism in the commodity sector.
Rate Cut Speculation in Europe
In Europe, recent economic data has led to speculation that the European Central Bank may cut interest rates sooner than expected. Economists forecast potential rate cuts at every meeting from October to April, contributing to market uncertainty in the region.
Small Caps Poised for a Post-Election Surge
Historically, markets tend to perform better after major U.S. elections, and small-cap companies have often led the way. According to industry experts, the U.S. Russell 2000 Index, which tracks smaller companies, has outperformed larger-cap stocks following past presidential elections. This could signal a positive outlook for small-cap stocks after the 2024 election, despite current market volatility.
Commodity and Cryptocurrency Updates
Gold remained flat, trading at US$2,659 an ounce, while oil prices retreated by nearly 3%, with Brent crude at US$73.33 a barrel. In the bond market, the benchmark 10-year U.S. Treasury yield rose by five basis points to 3.78%. Meanwhile, Bitcoin was down 1.5% at US$63,380, and Ethereum dropped 3% to US$2,576.
5 ASX Small Caps to Watch
- Gladiator Resources (ASX:GLA)
Gladiator announced promising drill results from its Mkuju Uranium Project in southern Tanzania. Recent drilling at the Likuyu North deposit revealed several mineralized intervals, including one measuring 7.1 meters at 1,963 ppm of uranium. The company aims to assess the viability of In Situ Recovery (ISR) as a potential extraction method.
- Piche Resources (ASX:PR2)
Piche Resources reported strong results from the Angelo A prospect at its Ashburton Project in Western Australia. Significant uranium grades were found, with 6.98 meters at 1,617 ppm and 0.34 meters at 16,050 ppm. The company continues to drill to explore the potential for further expansion.
- True North Copper (ASX:TNC)
True North Copper’s geophysical survey at the Mt Oxide Project in Queensland revealed multiple unexplored targets. Initial findings have identified shallow anomalies that align with historic drilling, further supporting the potential for copper exploration in the area.
- Indiana Resources (ASX:IDA)
Indiana Resources has confirmed high-grade rare earth element (REE) mineralization at the Minos REE Prospect in South Australia. Key findings included 35 meters at 1,215 ppm total rare earth oxides (TREO). The company plans further exploration and metallurgical testing to evaluate the resource's potential.
- Iceni Gold (ASX:ICL)
Iceni Gold announced the discovery of a 4.5 km long gold anomaly at its 14 Mile Well Gold Project in Western Australia. Recent drilling revealed gold mineralization in several holes, with plans for further drilling to explore the untested prospective area.
The ASX today offers a mix of potential growth opportunities, particularly in the small-cap sector, as global economic events unfold. Investors will be keenly watching both local and international markets for further developments.
