ASX Market Open: AI doubts fuel worst US session in nearly 2 years | 25 July, 2024

The ASX200 is staring down losses of 0.8 per cent after the Nasdaq & S&P 500 took their biggest hits since late 2022. The Nasdaq plunged 3.6%, the S&P500 2.3% and the Dow Jones 1.2%, as megacap stocks delivered underwhelming earnings reports – seeding doubts around the AI-driven rally’s sustainability.

Some of the biggest drags included Tesla – which fell 12%; ARM and Nvidia were both down close to 8%; Visa shed nearly 4%; and, Microsoft, 3.5%.

Meanwhile Canada’s TSX lost ground after policymakers dropped interest rates by 25 basis points to 4.5%. It’s the second monthly rate cut in a row.

Back in Australia and last month’s labour force data is due out later this morning.

Earnings reports are likely to dominate headlines, with Newmont Corporation (ASX:NEM) reporting production of 2.1 million ounces of gold, it reduced debt by $250 million, and it claims it’s on track to achieve its guidance.

Fortescue (ASX:FMG) delivered record iron ore shipments of 53.7 million tonnes – which is up 10 per cent year-on-year, but Ampol (ASX:ALD) reported its fuel sales were down nearly 6% for the first half of 2024 calendar year.

Our dollar lost half a per cent, to be buying US65.8 cents.

Silver took a 1.2% slide, to be back at $28.84 an ounce; Gold also pulled back to be at US$2394.72 – despite India lowering import duties on both precious metals. Iron ore’s been trading just above $108 a tonne, brent crude recovered to $81.52 a barrel, but natural gas continued its volatility dropping 2.85% to $2.12 a gigajoule.