The S&P 500 climbed on Monday to kick off the final week in September.

The broader index rose 0.4 per cent to 4,337.44. The Nasdaq Composite closed higher by 0.45 per cent at 13,271.32. The Dow Jones Industrial Average added 43.04 points, or 0.13 per cent, to 34,006.88.

All three major averages snapped four-day losing streaks.

Chemical giant Dow was the best-performing member of the 30-stock index, rising 1.7 per cent after an upgrade from JPMorgan.

Amazon shares climbed more than 1 per cent after the online retail giant said Monday it will invest up to $4 billion in artificial intelligence firm Anthropic. Anthropic will get access to Amazon’s computing power and the funds needed to help it cover the huge costs required to train and run massive AI models.

Stocks have struggled this month as the Federal Reserve signalled higher interest rates for longer, sending bond yields higher. The market also contended with a rally in crude oil and a winning streak in the dollar during the seasonally weak trading month.

The 10-year Treasury yield was last higher by 10 basis points at 4.542 per cent, reaching its highest level since 2007 when it hit 4.57 per cent.

Investors are also closely monitoring progress on a budget resolution in Washington. Lawmakers over the weekend expressed few signs of movement on a deal that would keep the US government funded for the remainder of the fiscal year. On Monday, Moody’s Investors Service warned a shutdown would be a “credit negative” event for the US.

Turning to US sectors now, all sectors except for Consumer Staples, Real Estate, and Utilities closed higher overnight. Energy was the best performer.

Shifting to China, shares of Evergrande plunged 21.8 per cent on Monday after the embattled developer said it was unable to issue new debt due to an ongoing investigation into one of its subsidiaries, dealing a fresh blow to its restructuring plans.

Evergrande’s woes knocked industrial metals, including iron ore, lower. This comes when seasonal demand from China has historically been strong. China buys about 70 per cent of the world’s seaborne iron ore. Chinese developers have stopped restocking steel.

Staying on the commodity front, in Europe, the region is facing the need to rely on US fossil fuels for an extended period as it seeks to diversify away from Russian natural gas and expand its renewable energy sector to enhance energy security. Top EU energy officials have ensured that the EU possesses the necessary tools to handle potential energy crises in the aftermath of the Russia-Ukraine conflict, including conservation measures and increased adoption of renewable energy sources.
 
Futures

The SPI futures are pointing to a 0.1 per cent fall.

Currency

One Australian dollar at 7:20 AM was buying 64.22 US cents.

Commodities

Gold lost 0.46 per cent. Silver dropped 1.92 per cent. Copper fell 0.70 per cent. Oil lost 0.39 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.78 per cent, Frankfurt lost 0.98 per cent, and Paris closed 0.85 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei added 0.85 per cent, Hong Kong’s Hang Seng dropped 1.82 per cent while China’s Shanghai Composite closed 0.54 per cent lower.

The Australian sharemarket closed 0.11 per cent higher at 7,077

Ex-dividends

Nick Scali Limited (ASX:NCK) is paying 35 cents fully franked
Perpetual Equity Ltd (ASX:PIC) is paying 4 cents fully franked
Southern Cross Electrical Engineer (ASX:SXE) is paying 4 cents fully franked

Dividends payable

Atlas Pearls Ltd (ASX:ATP)
Contact Energy Ltd (ASX:CEN)
Altium Ltd (ASX:ALU)
LGI Ltd (ASX:LGI)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

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