Market Highlights: Wall Street takes quick breather, but expert says its momentum is unstoppable

ASX set to open lower after Wall Street pullback
Spirit Airlines soars 53pc after securing debt relief
Why the S&P 500 could smash 6,000 soon

The ASX is poised to open significantly lower when the market resumes on Tuesday, with Wall Street pulling back after a week of record highs.

At 8am AEST, the SPI ASX200 futures contract was pointing down by 0.8%.

Overnight, US stocks took a breather after their longest weekly rally of the year as traders prepare for crucial earnings reports from companies like Tesla, Boeing, and UPS.

The S&P 500 fell by 0.18%, the blue chips-focused Dow Jones was down by 0.8%, but the tech-heavy Nasdaq rose by 0.27%.

Before last night, the S&P 500 had managed 30 sessions without back-to-back losses, which is one of the longest streaks since 1928.

“We believe there is continued upside ahead for stocks, especially now that we are entering a seasonally strong period of the year for markets,” said David Laut at Abound Financial.

US 10-year bond yields jumped by by 12 basis points to 4.20%, and analysts from T. Rowe Price believe they could hit 5% in the next six months due to rising inflation and concerns about US government spending.

Oil prices climbed another 1.5% after China implemented new stimulus measures to boost economic growth, including an unexpected cut to benchmark lending rates. This is expected to boost energy demand from China, the world’s largest oil importer.

To stocks, Qualcomm Inc. fell 1% despite launching a more advanced processor aimed at giving smartphones laptop-like performance and allowing them to leverage new AI tools.

Microsoft rose slightly after rolling out some new AI tools to help with stuff like sending emails and keeping records for business workers as part of its push into AI, cranking up the competition with rivals like Salesforce.

Spirit Airlines soared 53% after securing more time from creditors to tackle its debt situation that’s been raising worries about bankruptcy.

Earnings season ramps up this week, and investors will be keenly focused on reports from major players like Tesla, Boeing, and Verizon, as well as industrial giants like GE Aerospace and Honeywell.

Back home, WiseTech Global (ASX:WTC) shares will be back in the limelight today after CEO and founder Richard White was said to have sold off hundreds of millions of dollars worth of WTC’s shares to settle with his ex-wife, contradicting earlier claims about the sell-off.

Why the S&P 500 could smash through 6,000

The S&P 500 reached a record high of 5,882 last week, and the CEO of deVere Group, Nigel Green, predicts it could surpass 6,000 soon.

“The momentum in the market is palpable with savvy investors positioning themselves to ride the wave,” Green said.

We’re currently in a “blockbuster earnings season,” with major companies already delivering impressive results, particularly in the financial sector, which has boosted the Dow and S&P. As top-tier companies continue to report strong earnings, the market is gaining steam.

Green said that “these results aren’t isolated – they reflect a strong, resilient economy.” He warned that “if you’re not in the game now, you’re missing out.”

Central banks are also playing a key role. With inflation pressures easing, monetary policy is becoming more supportive.

“Lower rates are a dream for equity investors,” Green said, adding that they allow companies to borrow and invest more easily.

China’s stimulus plan is another significant factor.

Green explained that China’s efforts to boost domestic demand are creating a “tidal wave” that will benefit the S&P 500 and American exports.

The Fear Of Missing Out (FOMO) is also driving prices higher, said Green, as sidelined investors jump in.

Green advised that the real winners are those who are already investing in leading sectors like tech, financials, and consumer stocks.

“Smart investors are positioning themselves to capitalise on the sectors leading the charge. The question isn’t if the S&P 500 will hit 6,000 – it’s when.”

In other markets …

All prices at 8.30am AEST.

Gold price fell by 0.1% to US$2,719.44 an ounce.

Oil prices climbed by around 1.5%, with Brent crude now trading at US$74.00 a barrel.

The benchmark 10-year US Treasury yield jumped by 12 basis points (bond prices lower) to 4.20%.

The Aussie dollar dropped 0.7% to US66.62 cents.

Bitcoin slipped by 1.3% in the last 24 hours to US$67,751, and Ethereum also fell by 1.3% to US$2,674.

5 ASX small caps to watch today

Mandrake Resources (ASX:MAN)
Mandrake has announced an Inferred Resource estimate of 3.3 million tonnes of Lithium Carbonate Equivalent (LCE) at its Utah Lithium Project, positioning it as a leading US lithium asset. Direct Lithium Extraction (DLE) tests have produced 99.9% pure battery-grade Lithium Hydroxide from the project’s brines. Located in the Paradox Basin, Mandrake has good access to existing infrastructure, a skilled local workforce, and a supportive regulatory environment. Upcoming activities include re-entering existing wells to target high-concentration lithium-rich brines, producing large brine volumes for pilot plants, and commencing a Scoping Study, alongside pursuing additional US government funding opportunities.

Augustus Minerals (ASX:AUG)
Augustus has announced promising results from soil and rock chip sampling at the Justinian prospect within the Ti-Tree Project in Western Australia. New assays reveal high-grade rock chips with up to 16% copper and 5.32g/t gold over an area of 3.3 x 1.1km, supporting previous soil sampling results. These findings highlight areas of copper and gold anomalies linked to the Ti-Tree Shear near Crawford Granite. Additional anomalous soils have been found that warrant further mapping and sampling in surrounding areas. Ongoing mapping and fieldwork aim to refine these anomalies into drill targets for future exploration.

Magnetite Mines (ASX:MGT)
Magnetite has announced the launch of Green Iron SA, a consortium aimed at establishing a green iron industry in South Australia. The consortium includes Magnetite Mines, Aurizon Holdings, Flinders Port Holdings, and GHD. The company said South Australia has a unique opportunity to utilise its rich magnetite reserves to produce direct-reduced (DR) grade iron ore, positioning the state as a leader in green iron production and export. Green Iron SA plans to develop Port Pirie into a hub for pelletising and bulk export. It is also seeking partnerships with the South Australian and Federal Governments to accelerate essential infrastructure for the new industry.

Golden Deeps (ASX:GED)
Golden Deeps has announced a new Mineral Resource model for the Khusib Springs silver-copper deposit in Namibia, revealing significant potential for depth extensions. Recent drilling has shown promising intersections, including 69m at 100 g/t silver equivalent (AgEq), indicating the deposit is still open at depth and to the west. The Khusib Springs deposit previously produced 300,000 tonnes at 584 g/t silver and 10% copper. The latest drilling has uncovered thick intersections of silver, copper, and associated minerals like zinc and antimony, particularly from the high-silver bearing sulphide mineral Tennantite.

Peregrine Gold (ASX:PGD)
Peregrine is expanding its exploration on the Tin Can gold trend, focusing on areas to the east and west. Recent drilling has extended the trend 250m to the west, with the first hole returning 4m at 9.0 g/t gold. The trend is now extended 500m to the south-east, with soil samples showing gold values up to 200ppb, including 512ppb sample from DiscovEx Resources further south-east. The company said aeromagnetic surveys align well with the gold anomalies, and an Induced Polarisation survey is planned to identify potential mineralisation.

At Stockhead we tell it like it is. While Peregrine Gold is a Stockhead advertiser, it did not sponsor this article.