AU Morning Wrap: ASX 200 on Track for Best Annual Return Since 2021

Stocks inched higher Thursday, putting the $S&P 500 Index (.SPX.US)$ on pace for its longest weekly winning streak in nearly 20 years.

The broad index gained 0.04 per cent. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ fell 0.03, while the $Dow Jones Industrial Average (.DJI.US)$ rose 0.1 per cent, or 54 points.

The $S&P/ASX 200 (.XJO.AU)$ slipped 0.4 per cent, or 30.2 points to 7585.1 at the start of Friday's session as commodity prices edged lower overnight, snapping a two-day rally. It is within 60 points of the record high set in August 2021. Ten out of the 11 sectors were in the red.

Biotech darling $Neuren Pharmaceuticals Ltd (NEU.AU)$ is set to claim the title of best performing stock, sealing a 215.9 per cent return year-to-date. Earlier this month, Neuren revealed positive phase-two clinical trial results for its drug to treat cognitive disorder Phelan-McDermid syndrome in children.

Building materials company $James Hardie Industries PLC (JHX.AU)$ , fast food parent $Collins Foods Ltd (CKF.AU)$ and cement producer $Boral Ltd (BLD.AU)$ also lay claim to top-10 returns this year, demonstrating their pricing power in an inflationary environment that has clipped margins elsewhere.

Meanwhile, lithium and nickel producers $Core Lithium Ltd (CXO.AU)$ and $IGO Ltd (IGO.AU)$ are on track to be among the worst performers, headed for a 75.1 per cent and 32 per cent loss respectively. It comes as lithium prices slumped during the year and nickel was dogged by oversupply from Indonesia.