Market Highlights: Wall Street notches longest rally in 2024, and 5 ASX small caps to watch today

ASX expected to rise after Wall Street’s eighth consecutive day of gains
Palo Alto Networks and Advanced Micro Devices saw gains
Gold prices hit a record high thanks to BRICS’ heavy investment – report

Aussie shares are set to climb again when the market opens, following the positive mood in New York where US stocks have increased for the eighth consecutive session.

At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.5%.

Overnight, the S&P 500 was up by 0.97% to notch its longest rally in 2024, the blue chips Dow Jones lifted by 0.58%, and the tech heavy Nasdaq edged higher by 1.39%.

Goldman Sachs’ trading desk believes that momentum traders and a wave of corporate buybacks are likely to further fuel the US stock rally over the next four weeks.

“We just witnessed one of the largest and fastest unwinds that I have ever seen,” said Goldman’s Scott Rubner. “The August to September corporate repurchase window is historically strong.”

“I am bullish until September 16. This is when seasonals change. 2H of September is the worst two-week trading period of the year. I will not stick around for this,” Rubner added.

The focus now turns to Fed’s Jerome Powell, who will deliver a speech at the US central bank’s major annual meeting in Jackson Hole, Wyoming later this week (Saturday morning AEST).

Some analysts doubt that Powell will say anything that will significantly move the markets.

“With rate cuts already priced into the market, upside on even a dovish Jackson Hole speech is likely limited,” said a note from Bank of America.

To stock news, Palo Alto Networks rose by 3% after it beat Wall Street’s expectations on quarterly profit forecast, and expanded its share buyback program.

Advanced Micro Devices jumped 4.5% after agreeing to acquire server manufacturer ZT Systems in a cash-and-stock deal worth US$4.9 billion, adding a data centre technology that will bolster its efforts to challenge Nvidia Corp.

Estée Lauder slipped 2% after forecasting annual revenue growth that falls short of analysts’ expectations.

And General Motors climbed 1% after reducing its workforce by over 1,000 software engineers as it streamlines its software and services division.

Back home, earnings season continues with Baby Bunting, Dexus, Judo Bank and Hub24 among the companies set to release their results today.

BRICS hoping to undermine USD by buying gold?

Gold prices hit a new all-time high on Friday, partly due to the BRICS bloc’s heavy investment in the metal.

BRICS, which includes Brazil, Russia, India, China, and South Africa, has been buying large amounts of gold, possibly to back a new currency and reduce reliance on the US dollar, says a report out of Watcher Guru.

In 2024, China has significantly increased its gold investments, with other BRICS nations following suit. This move aligns with their goal to return to a gold-backed currency system and challenge the dominance of the US dollar.

Since 2022, BRICS has been the largest buyer of gold, building up reserves.

“In worst fears for the US dollar, there is growing speculation that the country is heading for a recession,” said Watcher Guru.

“Odds are rising for this to occur according to some experts. A recession would only weaken the US dollar more, strengthening BRICS on the flip side.”

In other markets …

Gold price has retreated slightly from its all-time high, down by 0.2% to US$2,503.37 an ounce.

Oil prices fell 3%, with Brent crude now trading at US$77.68 a barrel.

The benchmark 10-year US Treasury yield traded flat at 3.88%.

The Aussie dollar climbed by another 1% to US67.34 cents. This comes as Asian currencies surged to their highest levels (vs the USD) in 7 months yesterday.

Bitcoin meanwhile fell 0.7% in the last 24 hours to US$59,062, and Ethereum lifted by 1.4% to US$2,618.

5 ASX small caps to watch today

WIA Gold (ASX:WIA)
WIA has released promising drilling results from its Kokoseb Gold project in Namibia. Recent drilling has confirmed continued mineralisation in existing zones, discovered high-grade deposits below current estimates, and found new mineralisation in the Eastern zone. Key findings include intercepts in the Central Zone, such as 22.2 meters at 2.54 g/t Au, and new shallow mineralisation in the Eastern Zone with results like 7 metres at 1.29 g/t Au. Drilling is ongoing with three rigs targeting more mineralisation and expanding resources. A total of 9,115 metres of drilling has been completed.

Quickstep (ASX:QHL)
Quickstep plans to sell its Quickstep Aerospace Services MRO operation in Tullamarine, Victoria. Acquired in February 2021 for $2.64 million, the business has faced slower growth and losses due to tough market conditions. Quickstep believes selling the operation to a global MRO company is the best option to ensure its future success. The business will continue to operate normally during the sale process.

Integrated Research (ASX:IRI)
The performance management and analytics provider reported strong financial results for the year ending June 30. Total Contract Value (TCV) rose 22% to $83.9 million. Net profit after tax surged 193% to $27.1 million, with cash reserves up 72% to $31.9 million. The company declared a final dividend of $0.02 per share. CEO John Ruthven noted significant growth in the Americas, and Ian Lowe will become take over as CEO on October 1, 2024.

Many Peaks Minerals (ASX:MPK)
MPK has announced promising results from its exploration at the Odienné Project in Côte d’Ivoire. Auger drilling has identified existing high-priority targets and a new 4km gold anomaly at ‘Zone C,’ extending beyond previous findings. Reconnaissance diamond drilling has confirmed extensive shearing associated with gold mineralisation. The company now plans to begin drilling at both the Odienné and Ferke projects in the next two months.

Somerset Minerals (ASX:SMM)
Somerset has found two new gossans at the Prescott Project in Nunavut, with a possible third pending further tests. These gossans suggest valuable mineral deposits beneath. The ongoing geophysical survey and multispectral data are helping to identify drill targets. Surface and soil samples have been sent for analysis, with results expected in 4-6 weeks. Early drilling preparations are underway.

At Stockhead we tell it like it is. While Many Peaks Minerals is a Stockhead advertiser, it did not sponsor this article.