Good Evening,

Welcome to Equity Espresso’s Daily Market Recap. Markets returned from their long weekend with all the enthusiasm of someone returning to work after a 4-day weekend, finishing flat despite CBA reaching new highs. Let’s jump in.

Local Market

Markets recovered from early losses to finish nearly flat on Tuesday, with the S&P/ASX 200 index closing just 2.4 points (-0.03%) lower at 7,816.70 following the four-day trading break. The modest decline contrasted sharply with Wall Street's performance on Monday, when all three major US indices tumbled more than 2% amid heavy selling pressure.

The Financials (+1.23%) sector led our market higher, with CBA (+4.19%) rising for the 9th straight session to close at an all-time high price of $168.0. Macquarie (+0.56%) was the other strong performer in the sector.

The Technology (-2.26%) and Energy (-1.91%) sectors weighed most heavily on the market today. Technology stocks led the decline, with NextDC (-6.18%) and WiseTech Global (-2.40%) posting significant losses, while Energy stocks, including Woodside Energy (-1.79%) and Ampol (-1.66%), also retreated.

In an increasingly familiar pattern, Gold prices surged to a new all-time high yesterday, climbing approximately 2% to reach around US$3,480 after breaking through the US$3,400 barrier on Monday. Resolute Mining (+8.60%), West African Resources (+6.61%), and Evolution Mining (+4.85%) emerged as standout performers in the sector. The precious metal continues to attract investors seeking refuge in this traditional safe-haven asset amid persistent global economic uncertainty.

Over the U.S., President Trump turned his attention away from China and onto Jerome Powell, calling the Federal Reserve Chairman a ‘major loser’, warning that the U.S. economy could slow down unless interest rates are lowered immediately. Trump claimed that there is currently “virtually No Inflation” in the U.S., and that costs for energy and “most other things” are declining.

The long and short of it is that Trump wants rates lowered, which will reduce the interest rate that the White House will need to borrow to fund trillions in debt. Other speculation is that Trump is pre-emptively establishing a scapegoat so that when the U.S. economy inevitably falters, he can blame Powell for not cutting rates soon enough.

It has been the hottest commodity of 2025 - Are you buying gold right now?

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your own research before making any investment.