Market Highlights: Wall Street had biggest weekly gain in 2023, and 5 ASX small caps to watch today

ASX to open flat after a big finish in New York last week
The RBA is set to hand down a rate hike tomorrow
And where will the S&P 500 go from here?

Aussie shares are poised to open flattish on Monday, ahead of the RBA rates decision tomorrow.

On Friday, the S&P 500 rose by +0.94%, the blue chips Dow Jones index was up by +0.66%, and the tech-heavy Nasdaq climbed by +38%.

The three gauges had their biggest weekly percentage gain in about a year, on signs of cooling in both the US labour market and services sector.

To stock news, Block Inc shares traded on the NYSE jumped 11% after raising its full year profit guidance.

Travel stock Expedia surged 19% after strong bookings delivered higher-than-expected Q3 earnings.

Berkshire Hathaway fell slightly after the bell as it posted the first quarterly loss in a year, but said improved results from insurance helped boost its portfolio.

US Treasury yields tumbled after data showed US job growth slowed more than expected in October.

The Aussie dollar meanwhile climbed past the US65c handle, as experts are tipping an RBA rate hike could well be announced tomorrow on Melbourne Cup Day.

“We have increased our expectation for the RBA to include a rate hike at the November meeting, taking the cash rate to 4.35%,” said Emma Lawson, a fixed interest strategist at Janus Henderson.

Where is the downside resistance for S&P 500?

Last week, the global stock market witnessed its strongest weekly surge in 2023, with the S&P 500 index achieving its largest gains since April – closing Friday at 4,358.

Meanwhile, the Fed’s Jerome Powell hinted that the central bank may have finished raising interest rates, leading to a drop in long-term US Treasury yields and supporting the stock market.

Rania Gule, a market analyst at XS.com believes that with the escalating tensions in Gaza, the impact on the markets, especially stock indices, is expected to continue significantly.

“Therefore, I believe that the market is likely to remain volatile and range-bound based on that news,” Gule said, pointing to the technical charts.

“A bearish scenario could unfold if the price breaks below the October low at 4,105, as holding below this level could open the door to further decline towards the 4,000 level and then the support at 3,847.”

In other markets …

Gold price rose 0.35% to US$1,992.53 an ounce.

Oil prices tumbled -2%, with Brent trading at US$85.17 a barrel.

Iron ore futures lifted 0.5% to US$126.15 a tonne.

Base metals prices were mixed, with 3-month nickel futures falling by -0.19%, and copper futures up by 0.41%.

The Aussie dollar climbed over 1% to US64.07c.

Meanwhile, Bitcoin was up 0.15% over the past 24 hours to US$35,200.

5 ASX small caps to watch today

Elixir Energy (ASX:EXR)
Elixir announced the execution of an Information Sharing Agreement with Origin Energy (ASX:ORG) with respect to the upcoming Daydream2 well in its 100% owned Grandis Gas Project in Queensland. Origin will contribute $1 million in non-dilutive funding for Daydream-2, and is currently in the process of being awarded a Greenhouse Gas licence which overlaps Elixir’s ATP 2044. This licence facilitates Origin’s plans to investigate carbon capture and storage in this area.

Hazer Group (ASX:HZR)
Hazer gave an update on its Commercial Demonstration Plant (CDP). The company confirms that the CDP remains on schedule to commence Phase 2 of its operation to produce hydrogen and graphitic carbon in 2023. The CDP hot reactor has successfully completed fabrication milestone, and the plant is to commence immediately following reactor installation and hook-up.

Redstone Resources (ASX:RDS)
Analysis of high‐resolution satellite imagery covering the Radisson East and Sakami Lithium Projects in James Bay, Canada, has identified a significant number of potential Lithium‐Caesium‐Tantalum (LCT) pegmatite outcrops. Several high priority exploration targets have now been confirmed for follow‐up.

Raiden Resources (ASX:RDN)
Raiden has elected to exercise its Upfront Option to purchase 100% of the Li-Cs-Ta (LCT) rights over the Arrow Project from Arrow Minerals (ASX:AMD), providing RDN with 100% rights to all minerals over the Arrow project (223km2). Under the agreement, Raiden will pay Arrow $250,000 in cash and issue Raiden shares to the value of $250,000 for 100% of the LCT rights over the Arrow Project.

Victory Metals (ASX:VTM)
Mixed rare earth carbonate (MREC) test product has been successfully produced at laboratory scale from North Stanmore drilling samples. Assays confirmed valuable Heavy Rare Earth Oxide (HREO) to Total Rare Earth Oxide (TREO) ratio of 96.4% in the MREC test product. Victory says heavy rare earth elements are predicted to be in high demand and in major supply deficit.

At Stockhead we tell it like it is. While Raiden Resources and Victory Metals are Stockhead advertisers, they did not sponsor this article.