Wall Street Ends Lower, ASX to Inch Higher

All three major U.S. indexes closed Thursday in negative territory, pressured by weakness in Oracle and a rise in Treasury yields. The S&P 500 slipped 0.50% to 6,604.72, while the Nasdaq Composite lost 0.50% to finish at 22,384.70. The Dow Jones Industrial Average shed nearly 174 points, or 0.38%, to settle at 45,947.32.

Oracle tumbled 5%, extending a three-day losing streak and leaving the stock down nearly 16% from its recent high. Concerns are mounting that the market has overestimated the benefit of Oracle’s artificial intelligence deals to its core cloud business. Analysts at Rothschild & Co. Redburn initiated coverage with a sell rating, projecting a potential 40% pullback.

Tesla also weighed on the market, sliding 4% in the session.

Adding to the selling pressure, the 10-year Treasury yield touched 4.2% after fresh labour market data came in stronger than expected. Initial jobless claims fell to 218,000 last week, well below forecasts of 235,000 and 14,000 fewer than the prior period. A separate report showed second-quarter GDP was revised higher to 3.8%.

These signs of resilience could delay Federal Reserve rate cuts. Futures pricing showed the chance of a quarter-point cut at the late-October meeting easing to 85.5%, down from 91.9% the previous day.

Markets are bracing for the release of the August personal consumption expenditures price index on Friday, a key inflation gauge for the Fed. Investors are also monitoring the risk of a U.S. government shutdown. The Office of Management and Budget has told agencies to prepare “reduction in force” plans if Congress fails to reach agreement.

Australian shares are expected to open slightly higher, with SPI futures up 8 points, or 0.1%, to 8,810.

Key data releases to watch include ANZ’s latest New Zealand consumer confidence survey, Japan’s September inflation figures, and in the U.S., reports on personal income, household spending, and the core PCE index, the Federal Reserve’s preferred inflation gauge.