Global stock markets appeared to be regaining steam after another strong session in the US, supported primarily by a sharp fall in the oil price. The price of crude has fallen from over US$140 to below US$100 in the space of a few days, entering a bear market on threats of a slowdown in Chinese demand.
The news sent all three US benchmarks higher with the Nasdaq outperforming, up 2.9%, the Dow Jones rising 1.8% and the S&P 500 up 2.1%.
Whilst the headlines were concerning, with business inflation up 10% year over year, the rate held at last month’s level and when excluding food and energy was just 0.2%. Energy prices were 8% higher month over month.
Shares in most major airlines gained with United Airlines (NASDAQ: UAL) up 9% and Delta (NYSE: DAL) up 8.7% after both raised its quarterly revenue forecast on surging demand for travel.
The Federal Reserve rate decision lies ahead with expectations of a 0.25% hike.
US stock market movers
Here’s how other popular US stocks performed on Tuesday.
- Block (NYSE: SQ) up 8.7%
- NVIDIA (NASDAQ: NVDA) up 7.7%
- Tesla (NASDAQ: TSLA) up 4.6%
- Amazon (NASDAQ: AMZN) up 3.9%
- Chevron (NYSE: CVX) down 5.1%
- Exxon Mobil (NYSE: XOM) down 5.7%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is set to follow this positive lead from US markets to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.
