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The Australian stock market has been on an exhilarating ride lately, and today was no exception. The S&P/ASX 200 continued its relentless march upward, closing at an all-time high of 8122 points—marking a modest yet significant 0.3% gain. This is the third straight day the market has notched up wins, and the energy on the trading floor is palpable. The big movers? You guessed it—financials, consumer stocks, and the ever-glistening gold sector.
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It’s been a tale of two halves lately. On one side, you’ve got the financial and consumer sectors hitting their stride, thanks to bullish sentiment in the markets. Alcoa, the aluminum powerhouse, is riding high—its stock soaring nearly 6%, the kind of leap we haven’t seen in almost a decade. Aluminum demand is up, and Alcoa is cashing in as industries like automotive and construction turn to the versatile metal to keep their engines running. It's no wonder Alcoa's shareholders are popping champagne.
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But every market rally has its bruises. Telix Pharmaceuticals, which has been enjoying a stellar run recently, came crashing down today, shedding 6.5% in its worst single-day drop in over a month. If you thought the market was just one big party, Telix’s fall is a sobering reminder that every rally invites a round of profit-taking.
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Meanwhile, Emerald Resources took a similar hit, with shares plunging 5.9% after a string of good days. The decline looks like classic profit-taking after the stock’s recent rally. It's almost as if investors have been waiting for just the right moment to cash out and count their winnings.
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However, not all stories are marked by downturns. As the broader market contemplates the U.S. Federal Reserve's upcoming interest rate decision, gold is glittering with renewed brilliance. Prices for the precious metal rose to US$2577.70 an ounce, up 0.8%, as global uncertainty and inflation fears have investors flocking to this safe haven. Gold stocks, like Northern Star Resources and Evolution Mining, are riding this wave—rising by 2.8% and 2.5%, respectively. With inflation still looming large, many are betting gold will continue to sparkle in the weeks ahead.
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But let's not forget about the other side of the coin—the struggling lithium and energy sectors. While lithium doubters brace for a potential short squeeze, it's the short-sellers of these stocks that are licking their wounds today. As commodity prices fluctuate, lithium and energy stocks remain under pressure, unable to catch the tailwinds that are propelling other sectors forward. With demand forecasts softening, the rally in lithium stocks feels tentative, and unless supply tightens, this struggle may not end soon.
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The ASX might be setting records, but it’s a market divided. Financials are leading the charge, and gold stocks
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