ASX set to jump as Wall Street rallies; Retailer surges as Trump backs Sydney Sweeney ad
The S&P 500 jumped 1.3 per cent in afternoon trading to claw back more than two thirds of Friday's drop. The Dow Jones was up 493 points, or 1.1 per cent, in mid-afternoon trade, and the Nasdaq composite was 1.8 per cent higher. The Australian sharemarket is set to bounce higher, with futures pointing to a rise of 83 points, or 0.9 per cent, at the open. The ASX closed flat on Monday.
Idexx Laboratories helped lead the way on Wall Street and soared 26 per cent after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected. It also raised its forecast for profit over the full year.
Tyson Foods likewise delivered a bigger-than-expected profit for the latest quarter, and the company behind the Jimmy Dean and Hillshire Farms brands climbed 3.2 per cent.
They helped offset a 3.5 per cent drop for Berkshire Hathaway after Warren Buffett's company reported a drop in profit for its second quarter from a year earlier. The weakening was due in part to the falling value of its investment in Kraft Heinz.
The pressure is on US companies to deliver bigger profits after their stock prices shot to record after record recently. The jump in stock prices from a low point in April raised criticism that the broad market had become too expensive.
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Stocks just sank to their worst week since May not so much on that criticism but on worries that Trump's tariffs may be hitting the US economy following a longer wait than some economists had expected. Job growth slowed sharply last month, and the unemployment rate worsened to 4.2 per cent.
Trump reacted to the disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates in order to shoot adrenaline into the economy. The Fed has instead been keeping rates on pause this year, in part because lower rates can send inflation higher, and Trump's tariffs may be set to increase prices for US households.
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