Morning Report 12 Jan 22: ASX set for gains after Wall St rally ends at session highs

<p class="p1">US sharemarkets rebounded on Tuesday as investors appeared relieved that Fed Chair Powell's testimony to US Congress did not include any major surprises. Shares of mega cap growth companies Apple (+1.7%) and Amazon (+2.4%) led gains. Genomic sequencing company Illumina's shares rallied 17% after it issued an upbeat revenue forecast. But Moderna shares fell 5.3% after the WHO said more research was needed on vaccine efficacy against the Omicron variant. At the close of trade, the Dow Jones index rose by 183 points or 0.5% after being down 299 points at session lows. The S&P 500 index lifted 0.9% and the Nasdaq index added 211 points or 1.4%. US treasuries rose on Tuesday (yields lower) after Fed Chair Jerome Powell detailed his plan to combat inflation. The US Treasury sold US$52bn worth of 3-year notes at a yield of 1.237% into solid demand. US 10-year yields fell by 4 points to near 1.74%. And US 2-year yields dipped by 1 point to near 0.895%.</p> <p class="p1">This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank), and a market participant of ASX Limited and CHI-X Pty Limited, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited. Any advice contained in this report is general advice only and is not a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. Before making any investment decision, you should consider your own investment needs and objectives and consider seeking financial advice. Past performance is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.