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Chapter 1: What is the main topic discussed in this episode?
a listener production.
Tech shares slide, dragging down key US indices. Oil tumbles on progress in Iran peace talks. And we'll look at what's in store for our share market today. Hello, good morning. I'm James Gruber.
Chapter 2: Why did technology shares slide and impact US indices?
It's Tuesday, the 23rd of June. This is the morning edition of the ComSec Market Update. Well, overnight markets were dominated by two themes. First, the plunge in large cap technology shares in the US. It's being attributed to concerns about AI spending, even though that spending is nothing new.
Chapter 3: What factors contributed to the drop in oil prices?
The other element was an executive at Alphabet, the parent of Google, leaving the company to go to Anthropic. It was the second key departure from Alphabet to an AI rival in the past week. The other theme was the apparent progress in Iran peace talks. US Vice President J.D.
Chapter 4: What can we expect from the Australian share market today?
Vance spoke of the progress, but we'll have to wait and see whether it leads to a deal. But that news alone sent oil prices lower again. Let's take a deeper look at what's happened with Aussie futures, commodities and currencies. The ASX is poised to open higher with index futures up 0.2%. As for the ASX 200 yesterday, it closed 0.1% lower at $8,816.
Gains in banks and gold miners offset a sharp sell-off in WiseTech Global, which dropped 18% on reports that the Australian Federal Police was investigating allegations against the company's founder, Richard White. Today, energy and gold shares may struggle given the overnight drop in oil and gold prices. On those commodity markets, global oil prices fell as supply concerns eased after U.S.
Vice President J.D. Vance said progress had been made in talks with Iran and the Strait of Hormuz was open. Brent crude futures settled 3.3% lower at $77.90 a barrel. Base metal prices were mixed on Monday. Copper futures fell 0.3%, while aluminium futures soared 4.5%, after figures showed global aluminium output dropped 1.7% in the year to May. Gold futures slid as the US dollar firmed.
The futures settled down 1% at US$4,203 an ounce. Meantime, iron ore futures were steady, up 0.4% to US$100.78 a tonne. Let's take a look at currencies. They were lower against the US dollar. The euro dipped 0.4% to 1.1426 US dollars. The Japanese yen slipped 0.2% to 161.59 yen. And the Aussie dollar declined 0.2% to 70.01 US cents. Let's now head to Wall Street.
The Dow Jones Index finished up 0.3%, the S&P 500 fell 0.4%, and the Nasdaq lost 1.3%. A closer look at the trading day there. The S&P 500 and the Nasdaq fell on Monday, dragged lower by declines in mega-cap technology stocks, including Alphabet, while investors assessed developments in U.S.-Iran negotiations. Tech shares plunged, driven by AI spending concerns.
Alphabet tumbled 5% after that departure of a key executive to Anthropic. Meta, Amazon and Microsoft fell between 2.4% and 4.8%. The Communication Services Index was down 3.8%. SpaceX slid for a third straight session down 16% after last week's blistering post-IPO rally. Meanwhile, software shares were at an over two-month low.
Seven of the 11 major S&P 500 sectors were in the green, with real estate and energy leading the way. Among other movers, Apogee Therapeutics jumped nearly 47% after AbbVie said it would acquire the biotech company for $10.9 billion in cash. AbbVie rose 6%. U.S.
government bond yields climbed on Monday, with interest rate-sensitive two-year yields touching a 16-month high, as traders positioned for a more hawkish Federal Reserve and the prospect of rate hikes later this year. The U.S. 10-year Treasury yield added six points to 4.51%, while the U.S. two-year Treasury yield rose five points to 4.23%.
To the European markets, the continent-wide FTSE Euro First 300 index ended up 0.6% and the UK FTSE 100 added 0.7%. Europe edged higher on Monday as investors assessed the latest round of US-Iran negotiations and the resignation of British Prime Minister Keir Starmer. British banks advanced, with Barclays, NatWest and Standard Chartered up 3.9%, 4% and 1.3% respectively.
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