Yesterday, we flagged that the S&P/ASX 200 Index (ASX: XJO) was on track to break its all-time closing high. It did so, closing at 8,121.6 points. Well, today, we've seen a new all-time high in intraday trading.
The ASX 200 closed at 8,121.6 points yesterday and opened at that level this morning. But right out of the gate, the index shot up as high as 8,148.8 points. That's the new all-time intraday high. At the time of writing, the ASX 200 has pulled back a little but is still up a healthy 0.25% at 8,142.1 points. That nudges out its previous record intraday high of 8,148.7 points.
Although that's only a 0.1-point difference, a new intraday high is a new high.
It looks as though today's new high watermark for the Australian share market is being driven, as it so often is, by what's happening in the United States.
New records all around
Last night's Stateside trading saw the American markets clock a new high of their own. The Dow Jones Industrial Average Index (DJX: .DJI) rose by 0.55% last night. That was after touching a new record of 41,733.97 points.
The S&P 500 Index (SP: .INX) rose as high as 5,636.05 points. That's just a whisker off its own all-time high of 5,669.67 points.
However, the Nasdaq Composite Index (NASDAQ: .IXIC) went backwards last night, falling 0.52%. Unlike the other two major US indexes, the Nasdaq still has some distance to make up to hit record territory. Its current record stands at 18,671.07 points, a bit off the 17,592.13 points it closed at overnight.
The bullish mood of the US markets, and ASX 200 shares by extension, seems to be getting a boost from the widespread expectation that the US Federal Reserve is set to cut interest rates this week. That would be the first cut since the pandemic. Speculation is mounting that the Fed might even deliver a supersized 50 basis point cut (0.5%), rather than a standard 25-point drop.
If the Fed does lower rates this week, it would cement the notion that it has pulled off what most people didn't think was possible – a soft landing for the American economy. Usually, an inflation-taming rate hiking cycle from a central bank inevitably leads to a recession. As it has many times in the past.
As the US is far from being in a recession, investors around the world are understandably feeling bullish about the economic future. This seems to be contributing to the euphoria in both the American and ASX 200 share markets that we are witnessing.
Which ASX 200 shares are pushing the index up today?
Today's new intraday highs for the Australian stock market are being assisted by most of the major blue chip ASX 200 shares.
Index heavyweights ranging from BHP Group Ltd (ASX: BHP) and Woodside Energy Group Ltd (ASX: WDS) to Commonwealth Bank of Australia (ASX: CBA) and the other major ASX banks are rising today. Westpac Banking Corp (ASX: WBC) is a standout winner. It's currently up 0.7% after hitting a new 52-week high of its own today.
National Australia Bank Ltd (ASX: NAB) is the sole banking laggard, currently down 0.13%. CSL Ltd (ASX: CSL) is also being left out. Its shares are 0.15% lower at the time of writing.
Even so, enough of the major ASX 200 shares are being pushed higher this Tuesday to result in this new all-time high for the index. Let's see what happens next.
