Australian Shares Set to Rise Following Wall Street Gains
Australian shares are set for an uptick, taking cues from Wall Street where equities flirted with record highs despite continued declines in semiconductor stocks like Nvidia.
As of 7:30 AM AEST, ASX futures were up by 36 points, or 0.5%, to 7761. This follows a 0.8% drop in the benchmark S&P/ASX 200 Index on Monday, which is still on track for a modest monthly gain.
In the U.S., the S&P 500 fell by 0.3% and the Nasdaq dropped by 1.1%, but the Dow Jones rallied by 0.7%, driven by gains in the financial, real estate, and utilities sectors.
Nvidia experienced a significant decline, falling 6.7% and reducing its market value to $2.91 trillion USD. This marks a 13% drop over three sessions, ending its brief period as the world’s most valuable company.
John Stoltzfus, chief investment strategist at Oppenheimer Asset Management, commented that the U.S. bull market still appears “sustainable” as the rally expands to more sectors, with investors increasing their exposure to stocks. He noted that some short-term profit-taking is expected, especially in sectors that have seen exceptional growth since last year.
Oil prices continue their upward trajectory, with Brent crude rising 1% to $86.12 USD, up over 8% this month. Rodrigo Catril, senior FX strategist at National Australia Bank, mentioned that traders report fresh speculative buying, adding to the rally that began after prices hit a low of $77 USD in early June.