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US equity markets fell sharply, more than erasing the bounce recorded the previous session following the Federal Reserve’s largest rate hike since 1994, as concerns about the economic outlook returned to centre stage - Dow dropped -741-points or -2.4% to 29,927.07, sliding below 4%, with all eleven primary sectors closing in the red. Tesla Inc fell -8.54% after the electric vehicle maker hiked prices again on all its US models as it battles rising aluminium costs and the global supply chain crisis. The Dow and S&P 500 booked their lowest settlements since December 2020. The technology-centric Nasdaq slumped -4.1% to log its lowest close since September 2020. Amazon.com Inc (-3.72%), Apple Inc (-3.97%) and Netflix Inc (-3.75%) all sank nearly 4%. Tesla Chief Executive Officer Elon Musk held a question and answer session with Twitter Inc (down -1.66%) staff, pitching a vision of a one-billion-user platform (versus the current user base of ~229M) but providing no fresh updates on his US$44B deal. The small capitalisation Russell 2000 lost -4.70%.

The Federal Reserve hikes rates by 75 basis points and tells us they saved the US economy from recession.

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A late rally saw the Dow and S&P500 snap a five session skid after a choppy session as investors digested the latest monetary policy pronouncements from the Federal Reserve and comments from central bank Chair Jerome Powell - Dow up +304-points or +1.00%, briefly climbing as much as +600-points. The broader S&P500 +1.46%, Consumer Discretionary (up +3.02%) led ten of the eleven primary sectors higher. Energy (down -2.12%) was the only primary sector to close in the red. The Nasdaq rebounded +2.49%. Apple Inc rose 2.01% after it announced Major League Soccer would be exclusively available on Apple TV starting in 2023, in a 10-year deal estimated to be worth US$250M. All three indexes booked their best daily percentage gain since 2 June, according to Dow Jones Market Data. The small capitalisation Russell 2000 rose +1.36%.

Morgans Research Analyst Max Vickerson gives an update on the electricity markets in Australia, including his key stocks analysis.

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The Dow and S&P500 extended declines into a fifth straight session, with stocks hitting their session lows in the closing hour of trading ahead of the conclusion of the Federal Reserve’s latest two day monetary policy meeting - Dow lost -152-points or -0.50% to 30,364.83, its lowest settlement since 1 February, 2021. The index had climbed as much as +170-points earlier in the session and dropped as much -370-points. FedEx Corp rallied +14.41% (leading the Dow Transports index over >2% higher) to log its best day since 1986 after the economic bellwether announced that it would raise its quarterly dividend by more than >50% and add three new directors to its board. The broader S&P500 eased -0.38% to 3,735.48, logging its lowest settlement since 29 January, 2021 a day after entering official bear market territory. The S&P 500 has dropped -10.2% over the past five trading days, the worst percentage decline over that time span since March 2020, when the U.S. was first confronting the coronavirus pandemic, according to Dow Jones Market Data. The broader index now sits 22.1% below its 3 January record closing high. Utilities (down -2.58%) led nine of the eleven primary sectors lower. Information Technology (up +0.62%) and Energy (+0.07%) were the only two primary sectors to advance. The Nasdaq edged +0.18% higher. Oracle Corp rallied +10.41% after the Silicon Valley giant posted a better-than-expected fiscal fourth quarter result after the closing bell of the previous session. The small capitalisation Russell 2000 lost -0.39%.

US equity markets logged a second consecutive session of steep losses in the wake of last Friday’s (10 June) blistering inflation report, with the benchmark indices touching their session lows in the closing 30-minutes of trading after the a Wall Street Journal report suggested the Federal Reserve would consider raising rates by +75 basis points at the conclusion of their two day monetary policy meeting later this week - Dow tumbled -876-points or -2.79%, dropping as much as -1,019 points at one point in the session. Boeing Co (down -8.77%), Salesforce Inc (-6.96%) and American Express Co (-5.26%) were among the major drags on the Dow. The broader S&P500 shed -3.88% to 3,749.63, the lowest close since March 2021. Only five index constituents closed the session in the positive territory. The index settled over >21% below the 3 January record close (3837.248) and entered official bear market territory. The last time the S&P500 was in a bear market was in March 2020 at the onset of the pandemic. Energy (down -5.13%) led all eleven primary sectors lower, with all sectors declining over >2%. Travel stocks declined despite the Biden administration announced that it will drop the COVID-19 testing requirement for inbound air travellers from abroad from Sunday (12 June), ending one of the longest-running travel restrictions of the pandemic. United Airlines Holdings Inc fell -10.06% and Delta Air Lines Inc -8.29%, while cruise operators Carnival Corporation and Norwegian Cruise Line Holdings fell -10.32% and -12.23% respectively. The Nasdaq slumped -4.68%, extending losses for the technology-centric index during this current sell-off to more than >33%. Netflix Inc (down -7.24%), Nvidia Corp (-7.82%) and Tesla Inc (-7.10%) all fell over >7%. Tesla proposed a 3-for-1 stock split in its proxy statement filed after the closing bell last Friday (10 June), saying it would provide more flexibility for its employees managing their equity and serve as a recruiting tool. The split would be Tesla’s second in as many years, with the electric vehicle maker undertaking a 5-for-1 stock split in August 2020. Tesla is slated to hold its annual shareholder meeting on 4 August. Elsewhere, Goldman Sachs downgraded Netflix last Friday (10 June) to a “Sell” from “Neutral” and cut its price target to US$186 from US$265, citing “concerns around the impact of a consumer recession as well as heightened levels of competition on demand trends”. The small capitalisation Russell 2000 slumped -4.76%.

US equity markets fell sharply ahead of tonight’s AEST consumer price inflation (CPI) figures for May - Dow fell -638-points or -1.94%, The broader S&P500 shed -2.38%, with Communication Services (down -2.75%), Information Technology (-2.72%) and Financials (-2.61%) all declining over >2.5% to lead all eleven primary sectors lower. Tesla Inc fell -0.89% despite UBS upgrading the electric vehicle leader to “buy” from “neutral”, while leaving the price target of US$1,100 unchanged. The Nasdaq dropped -2.75%. All three benchmark indices booked their worst daily percentage drops since 18 May, according to FactSet data. Facebook parent Meta Platforms (down -6.43%) began trading under its new ticker, META, completing a rebranding effort. Advanced Micro Devices Inc (down -3.04%) hosted an Investor Day, with Chief Executive Lisa Su identifying Artificial Intelligence as the chipmaker’s “single highest growth opportunity” over the next few years. With the recent acquisition of Pensando, Ms Su said that AMD now has leading technology in data processing units (DPUs) chips specifically designed to process data on a large scale, adding that the company plans to be the “partner of choice in the data centre over the next three to four years.” Ms Su also released details of the company’s financial model over the next three to four years. The company is predicting annual revenue growth of ~20% annualised, free cash flow margins of more than >25%, and gross margins of more than >57%. AMD just broke 50% gross margins a few quarters ago, while Intel Corp (down -2.96%) has struggled to keep its gross margins higher than 50%. The small capitalisation Russell 2000 lost -2.12%. Nutrien Ltd rose +1.06% after the world’s largest fertiliser company said it has plans to boost its fertiliser production capability as the world grapples with shaky supply from eastern Europe. The company said it will ramp up potash production capability to 18M tonnes by 2025, representing a 40% increase compared to 2020, citing “structural changes in global energy, agriculture and fertiliser markets”.

The Australian cash rate is rising with the US effective fed funds rate as rates “normalise” to remove extraordinary pandemic stimulus.

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US equity markets retreated in muted trading, snapping a two session winning streak as investors continued to eye Friday night’s AEST (10 June) consumer price inflation (CPI) figures for May - Dow down -269-points or -0.81%. Intel Corp fell -5.28% after management warned of weakening demand for semiconductors at an industry conference. Separately, Citi Research analysts cautioned that the company could pre-announce weaker-than-expected earnings for the second quarter. The broader S&P500 shed -1.08%, with Real Estate (down -2.43%) and Materials (-2.10%) leading ten of the eleven primary sectors lower. Energy (up +0.15%) sat atop the primary sector leaderboard for a second consecutive session and was the only primary sector to advance overnight. Exxon Mobil Corp rose +1.18% to a record closing high of US$104.59. Altria Group Inc shed -8.37% to US$49.49 after Morgan Stanley cut their recommendation the cigarette and heated tobacco seller to “Underweight” (lowering the price target to US$50 from US$54), citing inflation pressures and long-term competitive risks. Domino’s Pizza Inc slipped -0.33% to US$384.00, with analysts at CFRA downgrading the company to a “Hold” recommendation, but lifting their target price to US$410 (from US$400). The Nasdaq lost -0.73%. The small capitalisation Russell 2000 lost -1.49%. The US-listed shares of Alibaba Group Holdings jumped +14.67% as Chinese technology stocks more broadly enjoyed a strong session in Hong Kong yesterday (8 June), with sentiment buoyed a wave of videogame approvals from regulators in China. It potentially marked a sign of easing regulatory pressures for gaming stocks in particular and the Chinese technology sector at large.

US equity markets advanced, picking up steam late in the session and shaking off early weakness following a profit warning from retailer Target Corp before the opening bell - Dow up +264points or +0.8%, The broader S&P500 rose +0.95%, with Energy (up +3.14%) returning to the top of the primary sector leaderboard and leading ten of the eleven primary sectors higher. Exxon Mobil Corp gained +4.58% to $103.37, climbing above >US$100 per share for the first time since 2014 (buoyed by an upgrade from EvercoreISI). Consumer Discretionary (down -0.37%) was the only primary sector to close in the red. Target Corp fell -2.31% after the retailer announced a plan to reduce its excess inventory (including markdowns, cancelling orders and removing inventory, along with price hikes to offset higher fuel and transportation costs, and supply chain adjustments such as increased holding capacity near U.S. ports), and downwardly revised its operating-margin guidance. The Nasdaq +0.94%. Apple Inc rose +1.76% despite news that the company must change the connector on iPhones sold in Europe by 2024 after European Union (EU) countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras. The company introduced its new MacBook Air and MacBook Pro models a day earlier during the keynote address of its annual Worldwide Developers Conference (WWDC) and also launched Apple Pay Later, a buy-now-pay-later (BNPL) service with no interest fees, in partnership with Goldman Sachs Group. The small capitalisation Russell 2000 rallied +1.57%. In merger and acquisition (M&A) news, Kohl's Corp rallied +8.24% after news the department store chain entered exclusive talks with retail store operator Franchise Group Inc (+4.78%) over a potential sale that would value it at nearly US$8B.