AU Morning Wrap: ASX Tops 8100; Oil Gains, DroneShield Sinks, Fed Hints at Rate Cut

Stocks surged Wednesday after the Federal Reserve held interest rates steady and noted progress against inflation. Traders returned to megacap tech stocks as chip shares soared. The $S&P 500 Index (.SPX.US)$ rose 1.58% to 5,522.30, and the $Nasdaq Composite Index (.IXIC.US)$ jumped 2.64% to 17,599.40, marking their best session since February. The $Dow Jones Industrial Average (.DJI.US)$ gained 99.46 points, or 0.24%, to close at 40,842.79. Fed Chair Jerome Powell indicated that a rate reduction could be possible if inflation data continues to improve, potentially as soon as the next meeting in September. The Fed's statement highlighted recent progress toward its 2% inflation target.

The Australian sharemarket has surpassed a record 8100 points, driven by hopes of continued rate cuts and rising oil prices. The $S&P/ASX 200 (.XJO.AU)$ rose 0.6% to 8138 points, building on a record high from the previous day due to cooling core inflation figures. In the U.S., the Federal Reserve may cut interest rates as soon as September if current economic conditions persist, according to comments from Chairman Jerome Powell. Rate-sensitive banks and real estate stocks have increased, with $CommBank (CBA.AU)$ briefly reaching over $138 per share for the first time before pulling back.

Gold prices saw their best monthly performance since March, fueled by geopolitical concerns and expectations of a September interest rate cut. U.S. gold futures $Gold Futures(DEC4) (GCmain.US)$ rose 1.52% to $2,496.6 per ounce, gaining over 6% for the month. Attention is now on the U.S. Federal Reserve's upcoming policy decision.

Elsewhere, oil rose following the assassination of Hamas' political chief in Tehran after Iran's supreme leader vowed revenge on Israel. BCA Research said it upgraded it subjective odds of a major oil supply shock to 37 per cent. Brent crude was 2.8 per cent higher to $US80.72 a barrel late in New York; US oil rose 5 per cent to $US78.49 a barrel. Energy stocks are 1.3 per cent higher, led by a 1 per cent gain in $Woodside Energy Group Ltd (WDS.AU)$.

As of latest data, $Bitcoin (BTC.CC)$ is priced at $64,770, down by 1.85% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,240, down by 0.84% in the past 24 hours.

$Droneshield Ltd (DRO.AU)$ has completed a $120 million capital raise to fund the research and development of new AI-based counter-drone technologies. The company's shares, which had surged over 600% in the past year before nearly halving in recent weeks, are set to resume trading this morning.

$Bravura Solutions Ltd (BVS.AU)$, a provider of back-office software for financial services, may return up to $75.3 million to shareholders. Following a capital raise in March 2023 and accelerated transformation, the board deemed the business overcapitalized with surplus funds. The payout awaits approval from Bravura shareholders and the Australian Tax Office.

ASX-listed payment provider $Findi Ltd (FND.AU)$, backed by the Flannery family, expects FY25 revenue to grow by up to 35% to between $80 million and $90 million, compared to $66.5 million in FY24. FY25 earnings are projected to be $30 million to $35 million, up from $27.4 million in FY24. The company has not provided net profit guidance due to uncertainties about the impact of business investments and acquisitions. Shares have surged over 700% in the past year, partly due to Findi's expanding presence in India.

$Kelly Partners Group Holdings Ltd (KPG.AU)$ is expected to release earnings on Thursday.