The futures of ASX 200 were indicating a firm that opened following the expansion of profits on Wall Street overnight. Futures ended 31 points or 0.35 percent higher at 8.30 am AEDT. The US majors gained momentum on technology and revived AI hope.
The S&P 500 closed at 6,965, up 0.47%. The Dow Jones was 50,136 and increased 0.04 per cent. reaching new highs. The Nasdaq climbed 0.90% to 23,239.
Investors monitored the ASX impact on the US stock market with the increase in risk appetite in the sectors. Good software profits and AI increases lifted the mood throughout the world. Local traders are now demanding to buy early in tech and resources.
ASX future screen reflects profits with the rallying of Wall Street technology stocks overnight. [Proactive Investors]
Tech And Commodities Lift Global Risk Sentiment
Stocks of technology were at the forefront of the rise as AI demand reaccelerated. Information Technology had increased 1.59, Materials was 1.44, and Energy was 0.84. Software revenue showed a positive surprise, and growth of Q4 was around 24 per cent on a year-on-year basis.
ChatGPT also increased its user growth by 10 percent month on month to 800m weekly users. Market commodities gained with equities as the gold price rose to trade above US$5,000/oz.
Silver rose to trade above US$80/o,z and copper rose to trade above US 6/lb. WTI oil rose to 64.38, up 1.31. These actions were indications of stronger world development. The Australian miners might enjoy improved prices of metals at the open.
Could The Dow Jones Effect On ASX Sustain Momentum Today?
The impact of the Dow Jones on ASX is still a subject of close monitoring by fund managers. The change of the index at 50,136 is indicative of stable corporate earnings in the US. Small caps also did well as the Russell 2000 increased 0.72 per cent to 2,690.
The market breadth remained the same, and the equal-weight S&P 500 was another record near. Sentiment was assisted by low volatility, and the VIX dropped 2.76% to 17.27.
Bond yields became soft with the US 10-year treasury declining to 4.198. Such circumstances tend to favour increased shares of equity. The local investors can replicate those flows in cyclical sectors and growth shares.
The trading floor on Wall Street reacts to all-time highs in the Dow and S&P 500. [ASX]
Sector Strength Supports US Market Gains Impact ASX
The performance of the sector was widely distributed throughout the US market. There was an advancement of materials, energy, and communication services. Industrials and utilities, along with real estate, recorded low returns.
Defensives were the only ones that slowed down as consumer staples and healthcare dropped 0.86. Commodity-based industry ETFs also shot up. Silver ran up 8.26, gold miners 5.63, and Uranium 5.16. Copper miners added 5.05%.
Such actions have the propensity to purchase Australian resource stocks. The name of Lithium might remain alive following new offtake deals and price maintenance.
What Local Stocks And Data Could React First?
Local company news can influence initial actions on the bourse. Amotiv recorded 1H26 revenue growth of 3.3% to $520.5 and underlying NPATA growth of 1.3% to $59.7.
Its interim dividend was up 8.1 to 20.0 cents. Seqirus (a company in CSL) won a 16m vaccination contract for injectable egg-free influenza vaccines.
PLS Group signed a multi-year offtake contract of up to 150, 000 tonnes of spodumene per annum. The floor price sits at US$1,000/t. Spodumene is currently trading at close to US 1,965/t. Good pricing of commodities may consolidate the purchasing of supplies.
The early ASX activity is dominated by the mining and healthcare stocks. [Australian Resources and Investments]
Can Global Growth Signals Extend The Rally?
The data on a global scale remains to demonstrate strong growth even when there is uncertainty about the policy. The exports of Taiwan increased 69.9 percent in January, the highest acquisition in 16 years.
The analysts attributed the boom to the demand for AI hardware. Goldman Sachs predicts US IPO to increase four times to US160bn by 2026.
Central banks are also tentative, yet inflation is stabilising around targets. These indicators buttress equity investments in the growth and innovation industries.
The US market gets leverage, and ASX may thus continue to succeed as long as offshore momentum continues. Investors will be watching the current consumer confidence and business data to be verified.
Also Read: A Day of Blood on the ASX: ASX Suffers Worst Day in Almost a Year Amid Global Market Rout
FAQs
- What is the focus keyword of this market trend?
The focus keyword is the US stock market’s influence on ASX.
- Why are ASX futures rising today?
Wall Street gains in tech and commodities improved global risk sentiment.
- How did the Dow Jones perform overnight?
The Dow Jones climbed to 50,136, up 0.04%, marking fresh highs.
- Which sectors may benefit most locally?
Technology, materials, and energy stocks may see early buying interest.
