US equity markets rallied after a softer-than-expected inflation report prompted investors to dial back their forecasts on the scale of further interest rate hikes in September   - Dow gained +535-points or +1.63%, exiting official correction territory.  The broader S&P500 +2.13% to 4,210.24, settling +14.8% above its mid-June low. Materials (up +2.88%), Consumer Discretionary (+2.87%), Information Technology (+2.77%) and Communication Services (+2.77%) all climbing over >2.5%. All eleven primary sectors advanced, with six sector logging gains of over >2%. Tesla Inc gained +3.89% despite filings on Tuesday (9 August) with the Securities and Exchange Commission (SEC) revealing that Elon Musk had sold ~7.9M shares between Friday (5 August) and Tuesday at prices ranging from US$838.57 to US$911.75 - ~US$6.88B in total. In a tweet, Mr Musk indicated he was done selling, adding: “In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.” Last week, Tesla shareholders approved plans for a 3-for-1 stock split, which will take place 24 August.  Trading will begin on a stock split-adjusted basis on 25 August, the company said in a regulatory filing. The Nasdaq rallied +2.85% to 12,854.80, exiting official bear market territory after 107 trading sessions. The technology-centric index is up 20.75% from its 2022 closing low of 10646.10 hit on 16 June, 2022.  Meta Platforms Inc rose +5.82% after the Facebook-parent said that it had raised US$10B in its first-ever bond offering. Apple Inc (up +2.62%), Alphabet Inc (+2.63%) and Amazon.com Inc (+3.53%) all rose more than >2%. The small capitalisation Russell 2000 jumped +2.95%.

Morgans AM: Thursday, 11 August 2022

Money News

Money News | 047102023 Dianne Colledge, Private Client Advisor at Morgans

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with more than 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices across all states and territories in Australia.

Morgans AM: Thursday, 11 August 2022

Morgans Financial Limited

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