Market Highlights: ASX to dip as Nasdaq hits record high; and why demand for helium could soar

ASX to open lower as inflation data looms
Iron stocks could gain after 2% rise in iron ore futures
Helium demand in semiconductors expected to surge, boosting ASX stocks

The ASX is set to start the week on the back foot, with futures indicating the S&P/ASX 200 will open about 2 points lower this morning.

This comes as global stocks face a crucial week ahead, with key inflation figures from both the US and Australia likely to dictate interest rate expectations.

Wall Street was mixed on Friday, with the S&P 500 down by 0.03%. The blue chips Dow Jones fell by 0.61%, while the tech-heavy Nasdaq rose by 0.59% to an all-time high.

ASX-listed iron stocks will be in focus today after iron ore futures closed 2% higher.

Gold enjoyed a 1% gain over the past week, and ongoing uncertainty around the US elections suggests more of the same could be in store this week.

The bond markets, meanwhile, are likely to see some action this week as everyone awaits the latest inflation data.

The Aussie CPI will be released on Wednesday, with expectations that annual inflation will ease to 2.9% for the three months ending September 30.

Traders have been pushing back their expectations for the first RBA rate cut, now looking at April 2025, and money markets suggest only a 30% chance we’ll see easing this year.

Over in the US, the Magnificent Seven stocks like Nvidia, Meta, Amazon, Microsoft, and Netflix all lifted on Friday, with Nvidia shares climbing around 2% to overtake Apple as the world’s most valuable company.

Waymo, Alphabet’s autonomous driving startup, announced a US$5.6 billion funding round on Friday to expand its driverless ride-hailing service. Alphabet’s shares were up 1.5%.

Tesla also had a solid day, with its shares rising by 3%. This followed a remarkable 22% jump in the previous session after the company announced its Q3 results and shared an optimistic sales forecast.

Intel rose more than 1% as its Core Ultra 9 285K chip, bundled with Z890 motherboards, quickly sold out in Japan and are now out of stock at major US retailers.

It’s going to be an interesting week as big hitters including Alphabet, Microsoft, Meta, Apple, and Amazon are all set to report their earnings.

Helium could increase more than 5x by 2035

The US Chips Act, designed to boost domestic chip manufacturing, has already allocated over US$30 billion of its US$39 billion budget.

This will likely lead to a significant rise in helium demand, crucial for making semiconductors, said a recent report from IDTechEx.

With the push for local chip production, companies are investing heavily in advanced technologies, driven by demand from sectors like AI, quantum computing, and electric vehicles.

Helium is essential for cooling chips during manufacturing, and as there are no real alternatives, IDTechEx predicts the global helium demand in the semiconductor industry could increase more than fivefold by 2035.

Major companies such as Intel and TSMC are already ramping up production capacity in the US. Intel plans to invest over US$100 billion to expand its chip-making facilities, while TSMC is building several new factories in Arizona.

This big increase in production will increase the demand for raw materials such as helium. Supply chains will need to adapt, especially since helium is a limited resource that often faces shortages, said IDTechEx.

ASX-listed companies with helium production capabilities can also position themselves as key suppliers, potentially locking in lucrative contracts with these major manufacturers.

In other markets …

All prices at 8.30am AEST.

Gold price rose by another 0.5% to US$2,747.60 an ounce.

Oil prices jumped by around 2%, with Brent crude now trading at US$76.05 a barrel.

The benchmark 10-year US Treasury yield climbed by 3 basis points (bond prices lower) to 4.24%.

The Aussie dollar was down by 0.45% to US66.13 cents.

Bitcoin rose by a further 1.6% in the last 24 hours to US$68,156, while Ethereum climbed by 1.47% to US$2,522.

5 ASX small caps to watch today

Solstice Minerals (ASX:SLS)
Solstice has completed aircore drilling at its Bunjarra Gold Project, with samples on the way to the lab. This drilling has narrowed down target areas for the upcoming Reverse Circulation (RC) drilling program, which will focus on gold targets beneath shallow cover. Recent resampling at Bunjarra showed promising results, including a peak of 5.89 grams per tonne of gold. Additionally, aircore drilling at Edjudina Range revealed low-level gold and an unexpected 350-metre wide ultramafic unit with elevated copper and nickel values. RC drilling at the advanced Bluetooth Gold Prospect is set to start soon.

Lincoln Minerals (ASX:LML)
Lincoln has announced a Pre-Feasibility Study (PFS) for its Kookaburra Graphite Project, located 40 km north of Port Lincoln in South Australia. The study shows a strong case for a low-cost project aimed at supplying the non-Chinese graphite market. The PFS outlines a staged development plan using open-pit mining and a straightforward flotation process to produce graphite concentrate for export. Key highlights include a pre-tax net present value of $114 million, a pre-tax internal rate of return of 41%, and a start-up capital requirement of $29 million. Lincoln aims to be the newest graphite producer in Australia.

Sarytogan Graphite (ASX:SGA)
Sarytogan said that its “Micro80C” Graphite is suitable for use as a recarburizer in the high-volume grey cast-iron market. The grey cast-iron market is substantial, requiring around 1 million tonnes of recarburizer each year. This demand could provide a steady market for Sarytogan beyond the initial production estimates, the company said. CEO Sean Gregory said this use could support future expansion of the Sarytogan Graphite Project. The next step involves processing ore from the trial mine to produce samples for testing and customer approval.

Next Science (ASX:NXS)
NXS has announced the publication of a study showing that its XPERIENCE effectively prevents periprosthetic joint infections in patients undergoing total knee and hip replacements. The study involved 471 patients who received XPERIENCE, resulting in a zero percent infection rate, compared to a 0.5% infection rate in a control group treated with a standard solution. The findings, released by Dr Ravi Bashyal, have been peer-reviewed and published in the Journal of Orthopaedic Experience & Innovation. XPERIENCE is a medical product designed to prevent infections, particularly periprosthetic joint infections (PJIs), during surgical procedures such as total knee and hip replacements.

Podium Minerals (ASX:POD)
Podium announced that creditors of EVM Nickel have approved its Deed of Company Arrangement (DOCA) to acquire all assets of EV Nickel. This includes mineral rights, licences, and intellectual property for the Range Well Project. The DOCA now requires approval from Podium’s shareholders, as well as foreign investment clearance for Johnson Matthey plc, which will become a key shareholder upon completion. Merging the Range Well Project with Podium’s Parks Reef Project will simplify operations and enhance potential cost benefits. Executive Chairman Rod Baxter said this acquisition at a low point in the market offers significant opportunities for project development, while also positioning Podium for future metal price recovery.