Market comment: Breath-hold and bank jitters

The tech rally and buy-the-dip trend continued for a second day, with the Nasdaq gaining 0.8% and the S&P 500 rising 0.5%, though both indices stopped short of breaking through key levels as caution set in. It was for a couple key reasons. The market's hesitation to push past these levels is symbolic, as investors await the Trump-Harris inaugural debate and fresh US inflation reports, which could influence the Federal Reserve's upcoming rate decision. There's a 33% chance of a 0.5% cut, while markets have fully priced in a 0.25% cut (with a 133% probability). If the CPI matches or is softer than expected, it could help the market break through key levels.

Looking ahead, futures suggest the Aussie share market will rise following Wall Street, though gains may be subdued due to the ex-dividend season. Positive pockets are expected in copper, gold, silver, and nickel stocks as these key metals push higher, while iron ore stocks are expected to be on the nose as are oil stocks, as oil retreated with Brent crude oil down 3.7% as OPEC slashed demand forecasts for the second time in months.