Pre-Market Report – Monday 22 April: Tensions Ease, Commodities Rise

Market Updates

Wall Street finished mostly lower overnight following a sharp sell-off of mega-cap tech stocks. Gains by American Express +6.22%, kept the Dow in the green, up 211 points (+0.56%). Up 327 points at best. Early gains on the S&P 500 and NASDAQ didn’t last, turning lower to book six straight sessions of losses, the longest streak of declines since October 2022. S&P 500 eased 0.88%, breaking below 5,000, and the NASDAQ stumbled over 2%. For the week, the S&P 500 fell 3.05%, NASDAQ 5.52%, and the Dow edged up 0.01%. Treasury yields eased marginally, oil eked out a miner gain after Iran downplayed the effect of Israeli strikes, and the VIX broke above 20 overnight before settling lower. The tech sector came under significant pressure this week after TSMC scaled back its outlook for a chip-market expansion and ASML Holdings posted disappointing orders, raising further concerns about what's to come from tech next week.
ASX set to rise. SPI futures up 27 points

• Copper hits two-year high, nickel surges on talk of China buying.
• Nickel price hits seven-month high on talk of Chinese government buying.
• Iron ore retreats but set for second weekly gain on improving China demand.
• Gold on track for weekly rise as Middle East risks loom.
• Oil settles slightly higher as Iran plays down reported Israeli attack.
• US EPA allows temporary expansion of higher-ethanol gasoline blend this summer.

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