Market Wraps

Morning Wrap: ASX 200 to rise, S&P 500 and Nasdaq surge to record closes on Nvidia-fueled rally

Fri 23 Feb 24, 8:37am (AEST)

ASX 200 futures are trading 32 points higher, up 0.42% as of 8:30 am AEDT.

Major US benchmarks surged to record levels after Nvidia's monster earnings sparked a global stock market rally overnight, Japan's main stock index closes above its 1989 record high, European PMIs inch towards a recovery in January plus highlights from the Fortescue and Qantas earnings call Q&A.

Let's dive in.

Overnight Summary

Fri 23 Feb 24, 8:22am (AEDT)

Name Value % Chg
Major Indices
S&P 500 5,087 +2.11%
Dow Jones 39,069 +1.18%
NASDAQ Comp 16,042 +2.96%
Russell 2000 2,016 +1.05%
Country Indices
Canada 21,318 +0.69%
China 2,988 +1.27%
Germany 17,370 +1.47%
Hong Kong 16,743 +1.45%
India 73,158 +0.74%
Japan 39,099 +2.19%
United Kingdom 7,684 +0.29%
Name Value % Chg
Commodities (USD)
Gold 2,033.5 -0.11%
Iron Ore 127.3 -0.48%
Copper 3.8955 +0.40%
WTI Oil 78.46 +0.56%
AUD/USD 0.6557 +0.11%
Bitcoin (AUD) 79,176 +1.83%
Ethereum (AUD) 4,588 +3.45%
US 10 Yr T-bond 4.327 +0.05%
VIX 14.43 -5.93%

US Sectors

Fri 23 Feb 24, 8:23am (AEDT)

Information Technology +4.35%
Consumer Discretionary +2.19%
Communication Services +1.61%
Financials +1.33%
Industrials +1.21%
Health Care +1.21%
Materials +0.96%
Consumer Staples +0.37%
Real Estate +0.24%
Energy +0.12%
Utilities -0.77%


SPX 2024-02-23 08-14-43
S&P 500 gaps up and rallies intraday to finish near best levels (Source: TradingView)


  • Companies to report today include Austal, Bapcor, Brambles, Aracadium Lithium, Monash IVF, Perseus Mining, Pexa Group, Sandfire Resources, Block and more

  • Aussie Broadband reports mixed 1H results, downgrades full-year view (Announcement)

  • Paladin Energy reports 1H net profit from cont ops of $76.8m (Announcement)

  • Saint-Gobain’s $4.3bn bid for CSR two years in the making (AFR)

  • Bega Cheese upgraded to Overweight from Neutral at Barrenjoey, target increased to $4.40 from $3.50

  • Eagers Automotive upgraded to Buy from Hold at Bell Potter, but target decrease to $15.20 from $15.65

  • Iluka Resources downgraded to Underperform from Neutral at BofA, target cut to $6.85 from $7.0 

  • Super Retail Group upgraded to Neutral from Underweight at JPMorgan, target increased to $16.10 from $15.50 

  • Tabcorp upgraded to Outperform from Neutral at Macquarie, but target cut to $0.85 from $0.90


  • S&P 500 finished higher, near best levels and logged a new all-time high

  • Nasdaq at record highs, marks best session in more than a year

  • Nvidia opens 11.3% higher, rallies intraday to close up 16.4%

  • Nvidia driving broad-based gains across semiconductor stocks and megacap names like Meta (+3.9%), Amazon (+3.6%) and Microsoft (+2.4%)

  • Cool stat – Nvidia makes up over 4% of the S&P 500 and a little over 5% of the Nasdaq

  • Nvidia's outlook saves broader market as AI hype continues (Bloomberg)

  • Market price in Fed's outlook on rates, reins in aggressive bets on cuts (FT)

  • Bond traders positioning for renewed selloff (Bloomberg)

  • Nikkei overtakes 1989 high to hit all-time high (Bloomberg)


  • Nvidia revenue and guidance exceed lofty expectations on surging AI demand (Reuters)

  • Rivian to cut 10% of workforce as production guidance underwhelms (Bloomberg)

  • Intel to produce high-end chips for Microsoft (FT)

  • Google to will pause the image generation of people (Bloomberg)


  • FOMC minutes stress need for greater confidence on inflation (Bloomberg)

  • Fed Governor Bowman says time to cut rates 'certainly not now' (Bloomberg)

  • BOJ watchers fall in line with April rate hike scenario (Reuters)

  • Eurozone money markets push back ECB rate cut expectations (Bloomberg)

  • BoE's Greene says needs more evidence that UK inflation becoming less entrenched before backing rate cuts (Bloomberg)


  • White House's proposed sanctions on Russia in response to Navalny's death unlikely to include aggressive penalties (Politico)

  • Biden administration planning to strengthen restrictions on China's Semiconductor Manufacturing International Corp in wake of Huawei Mate 60 Pro (Reuters)

  • Israeli officials push ahead with Rafah offensive though sources say no clear plan for safe evacuation of civilians (Bloomberg)


  • Eurozone PMIs inch towards growth in February (Reuters)

  • UK PMIs suggests economy in recovery, inflation persists (Bloomberg)

  • Japan government downgrades economic view on slow consumer spending (Reuters)

  • Japan PMIs softer as manufacturing declines deepen (Reuters)

Industry ETFs

Fri 23 Feb 24, 8:22am (AEDT)

Name Value % Chg
Steel 70.095 +0.75%
Copper Miners 36.0 +0.08%
Lithium & Battery Tech 42.76 +0.07%
Silver 20.815 -0.69%
Strategic Metals 48.35 -0.76%
Uranium 27.75 -2.12%
Gold Miners 26.15 -2.50%
Construction 66.1375 +1.91%
Global Jets 20.295 +1.27%
Aerospace & Defense 126.02 +0.40%
Agriculture 22.0801 -0.32%
Biotechnology 137.17 +1.41%
Cannabis 5.15 +0.78%
Name Value % Chg
Bitcoin 24.62 +2.16%
CleanTech 8.85 -2.43%
Hydrogen 5.3434 -3.37%
Solar 42.68 -4.65%
Semiconductor 643.41 +4.93%
Robotics & AI 30.76 +4.41%
Video Games/eSports 61.61 +3.53%
E-commerce 21.865 +2.36%
FinTech 25.38 +2.22%
Cybersecurity 29.21 +2.13%
Cloud Computing 21.45 +1.18%
Electric Vehicles 23.71 +0.89%
Sports Betting/Gaming 17.62 +0.86%

Slow Tech Response

Nvidia's results dropped around this time on Thursday – So I figured we'd see a pretty strong response for local tech-related names like Megaport (ASX: MP1), Life360 (ASX: 360) and NextDC (ASX: NXT).

Interestingly, most of these names opened flat or lower on Thursday. It wasn't until around 11:00 am AEDT that they started to realise "oh hang on ... I think the AI trade is back" and started to rally. Classic ASX.

Let' see if this strength kicks on today.

MP1 2024-02-23 08-30-23
Source: TradingView

Fortescue Earnings Call Highlights

Fortescue (ASX: FMG) shares finished 2.1% higher on Thursday after its reporting better-than-expected half-year revenue, earnings and dividends. Numbers aside, here are the key takeaways from its earnings Q&A.

  • Recovering from the late December derailment is on track, with additional rail capacity helping to recover lost tonnes.

  • Pilbara decarbonisation program is expected to ramp up in H2, with overall spend for the year within guidance.

  • Capital allocation framework continues to prioritise return of capital to shareholders and dividend policy of 50% - 80% remains unchanged

  • Two hydrogen projects in Norway and Brazil are being fast-tracked, with Norway likely next for final investment decision (FID)

  • No significant issues reported regarding custom clearance delays in China and iron ore demand remains robust despite anticipated scrap supply increase

Qantas Earnings Call Highlights

Qantas (ASX: QAN) shares opened in positive territory on Thursday but sold off intraday to close 6.8% lower. Numbers for the first-half were largely in-line with consensus but generally 3-5% below Jarden estimates. The company's loyalty earnings guidance and FY25 capex also missed expectations.

  • Return to pre-COVID earnings seasonality expected, with cost focus and transformation program set for H2

  • Commitment to margin targets reiterated, with confidence in domestic market structure and ongoing transformation work

  • New aircraft delivery delays due to supply chain issues but flexibility allows for network adjustments

  • A$230 million customer experience investment confirmed as ongoing and improvements seen in on-time performance and customer satisfaction.

  • Operating cash flow expected to improve in H2 and beyond, supporting both business investment and shareholder distributions

  • A$400M buyback commitment reaffirmed but timing dependent on market liquidity

  • Consultants engaged to enhance operational performance using global best practices and improvement seen but aim is for better than pre-COVID levels

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: Bluescope Steel (BSL) – $0.25, Fiducian Group (FID) – $0.18, GWA Group (GWA) – $0.07, Lendlease (LLC) – $0.06, GUD Holdings (GUD) – $0.185

  • Dividends paid: Goodman Group (GMG) – $0.15

  • Listing: None

Economic calendar (AEDT):

  • 12:30 pm: China House Price Index (Jan)

  • 8:00 pm: Germany IFO Business Climate (Feb)

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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