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Welcome to Equity Espresso’s Daily Market Recap.

The Australian share market experienced a broad sell-off on Wednesday, extending losses as investors await tomorrow’s U.S. Federal Reserve Interest Decision. The ASX 200 index lost a further 39.9 pts. or 0.51% closing at 7,715.50. A surge in Apple’s (+7.3%) share price helped lift the NASDAQ and the S&P 500 to record highs in an otherwise dull day on Wall Street.

Locally, only the Energy (+1.01%) sector finished higher, thanks to a lift in Woodside Energy (+2.58%) shares after Macquarie Bank upgraded the company to an “outperform” rating.

Uranium stocks were the biggest detractor in the sector as futures for the commodity fell by nearly 2% to US$82.75. Paladin Energy (-1.79%), Boss Energy (-5.16%) and Deep Yellow (-5.57%) all finished lower.

The Utilities (-1.08%) sector was the worst performer on the day, with falls from Origin Energy (-0.89%) and APA Group (-1.65%). Technology (-0.97%) stocks also saw red, with Wisetech Global (-2.68%) the biggest faller.

In company news:

• Judo Capital (+3.85%) received a boost after it was announced that it would enter the ASX 200 index in place of CSR Limited, which is set to be acquired by Compagnie de Saint-Gobain. The changes will take effect on June 20.

• Botanix Pharmaceuticals (+3.64%) rose after it announced that it had submitted the last label materials to the U.S. Food & Drug Administration (FDA) for Sofdra™, a pending prescription treatment for excessive underarm sweating.

• Bapcor (+1.01%) shares rose again after its 14% rise on Tuesday after it confirmed it was the subject of a takeover offer from Bain Capital at $5.40 per share.

Wall Street

Another day, another record on Wall Street as the S&P 500 (+0.3%) and NASDAQ (+0.9%) indices both registered closing highs for a second straight day on Tuesday while the Dow Jones (-0.2%) fell. Apple (+7.26%) led the pack, with the world's largest company by market cap hitting a record close after it unveiled new artificial intelligence features in its devices, including an improved Siri virtual assistant.

Unsurprisingly, the Technology (+1.66%) sector was the best performer on the day, one of only two sectors to end the day in green, while Financials (-1.21%) fell the most.

In company news, Affirm Holdings (+11.04%) jumped on news that its BNPL loans will be embedded into Apple Pay as an option for purchases for U.S. customers. General Motors (+1.35%) will buy back around $6 billion of its own shares while also cutting its full-year E.V. sales forecasts to between 200,000 - 250,000 from a prior range of 200,000 to 300,000

S&P500 Sector Performance

Economic Data

• U.K. GDP was flat in April, which was in line with expectations following a 0.4% rise in March. It was the weakest performance in four months, as a fall in industrial output and construction offset a surge in services.

• China's Annual Inflation Rate was 0.3% in May 2024, holding steady for the second straight month while falling short of market estimates of 0.4%.

• China's Producer Prices dropped by 1.4% YoY in May 2024, slightly less than market forecasts of a 1.5% drop, following April's figure of a 2.5% decrease.

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🌎️ Around The Globe

• Adobe is updating its terms of service to assure users that their work will not be used to train artificial intelligence, following a week of customer concerns about A.I. training.

• Moderna says its combination vaccine, which targets both COVID-19 and the flu, was more effective than existing standalone shots for those viruses in a late-stage trial.

• Nokia's CEO, Pekka Lundmark, demonstrated a new "immersive audio and video" technology that enhances call quality with three-dimensional sound for more lifelike interactions.

• U.S. Dockworkers are threatening to strike in protest of the use of automated machinery.

• Virgin Galactic launched six people into suborbital space this past Saturday on the final voyage of the VSS Unity space plane.

• The World Bank upgraded its outlook for the global economy Tuesday, estimating it will expand 2.6% this year on sustained growth in the United States.

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*1-year, 3-year and 5-year returns are calculated as of the end of April 2024.

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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 research before making any investment decisions.