Markets are bouncing back on a tech rally

A tech rally has pushed the Nasdaq back towards towards bull market territory as Apple refuses to cut back production on the iPhone. These are the five big stories from the week that was.

1. Relief rally

Could U.S. inflation have finally peaked? Data shows it fell from a 40-year-high of 9.1% to 8.5%, a small improvement but still. 

Markets cheered on the result with a huge tech rally on Wednesday. The Nasdaq is now 20% higher than its recent low in the middle of June.

Locally, the Commonwealth Bank says higher interest rates will cut spending and push Australia into a “short, sharp contraction” but not a recession.

2. Meme-mentum

Meme stock mania returned to the market this week as Bed, Bath & Beyond took off along with AMC and others.

But investors should be cautious. There are some very good reasons why trading speculative stocks is even riskier this time around. 

As interest rates rise, there’s a good chance of a sharp correction. With heightened volatility, the meme-mentum could fade at any moment. 

3. No deal

Shares in copper and nickel miner OZ Minerals this week soared almost 40% after BHP lobbed a $8.3 billion takeover bid at it. 

OZ almost immediately rejected the offer, arguing it was being significantly undervalued – and investors appear to agree.

OZ’s share price has jumped above the $25 BHP offered. Perhaps the market suspects it won’t be the last we hear about this.

4. Magic money

Disney shares are soaring after growing profits by 50%, as cashed-up tourists pour back into its theme parks.

Its streaming service Disney+ also found an extra five million subscribers analysts didn’t see coming as it closes ground on Netflix.

The bad news? Users that want to sidestep a price hike may need to contend with ads on the service.

5. Supply & Demand

Apple has told suppliers they better get their production lines going as it refuses to cut the number of devices it takes to market.

Despite a general downturn in the electronics category, Apple will produce 90 million iPhone 14s and another 130 million units of older models.

It’s a vote of confidence in the strength of Apple’s market position. Samsung on the other hand has reduced production this year by 30 million units.