Australian shares hit record highs on Monday after U.S. Federal Reserve Chairman Jerome Powell commented on the potential for an interest rate cut in September. Investor optimism was conveyed across sectors, with mining, technology, and gold stocks leading the gains.
Powell’s Comments Lift Global Sentiment
The S&P/ASX 200 index gained as much as 1% to a new high of 9,054.50 in early trade, with most of the sectors in the positive territory. Consumer staples was the only segment in the red. The benchmark index had shed 0.6% in the previous session.
The S&P/ASX 200 index climbed to a fresh record high in early Monday trading
Powell indicated on Friday that the Federal Reserve is willing to reduce borrowing costs at its Sept. 16-17 policy meeting. Futures traders now predict an 84% likelihood of a quarter-point rate cut and expect as much as 100 basis points in cuts by mid-2026.
The U.S. is among Australia’s largest investment and trading partners. Rate cuts in the U.S. have a tendency to influence Reserve Bank of Australia monetary policy decisions, according to market observers.
Financials, Miners, and Gold Stocks Rally
Shares in BHP, Rio Tinto, and Fortescue advanced as mining stocks rallied strongly
Sydney financial shares squeezed out advances, with National Australia Bank rising 0.7% and the broader sector 0.4% higher. The mining companies recorded more decisive upward movements, with BHP Group rising 2.4%, Rio Tinto 2.1%, and Fortescue 2.2%.
Gold producers were also higher as the sub-index rose to its highest point since June. Northern Star Resources rose 2.7% and Evolution Mining added 1.9%. Energy stocks rose 1.1%, assisted by Santos, which awarded exclusivity on an $18.7 billion ADNOC-led offer amid a 22.3% fall in half-year profits.
Technology and Corporate News
Technology stocks climbed 0.9%, equaling the broader market rate. Safety products provider Ansell added 11.8% after reporting increased full-year operating profits and a $200 million share buyback scheme.
At the other end, plumbing products supplier Reece suffered its worst intraday decline on record, tumbling 21.8% after weaker-than-expected full-year results.
Nvidia Reclaims Top Spot Globally
NVIDIA’s stock surged to an all-time high again, restoring its position as the world’s biggest company by market capitalization with a market capitalization of $4.3 trillion. After a precipitous fall earlier this year, stocks have returned with a 31% year-to-date gain, far outpacing broader market indices.
The company keeps benefiting from booming demand for graphics processing units (GPUs) as big tech companies invest heavily in artificial intelligence infrastructure. Amazon, Alphabet, Microsoft, and Meta are among those increasing chip purchases for data centers, robots, and new AI-driven services.
Analysts continued that Nvidia’s forward valuation has eased from earlier highs, with some estimates demanding up to 400% upside. The company is also expanding into software and quantum computing, supported by its CUDA ecosystem and new CUDA-Q framework.
Locksley Resources Secures Breakthrough Alliance
Locksley Resources shares jumped 40% to 31.5 cents after it announced a strategic alliance with Rice University in Houston. The partnership is focused on the development of new high-tech antimony processing technologies and finding new applications in energy storage.
The agreement is regarded as a foundation for U.S. efforts towards the re-establishment of domestic antimony processing capacity, a metal critical to defense and clean energy uses. Researchers at Rice University will work in partnership with Locksley to establish sustainable hydrometallurgical processes, reducing the application of traditional chemical-intensive extraction.
Locksley has also put forward potential applications of antimony in next-generation batteries and supercapacitors, extending its use case beyond traditional defense markets. The company’s Desert antimony project in California provides the upstream foundation for this drive.
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Market Outlook
Investor sentiment remains upbeat as U.S. monetary policy pivots towards easing, supporting equity markets across Australia and New Zealand. The S&P/NZX 50 index gained 0.7% to 13,137.67, following a regional trend.
Global demand for artificial intelligence and essential minerals continues to drive stock-specific rallies. The revival in Nvidia and Locksley’s U.S. coup d’état points to the growing impact of technology and resource innovation on market activity.
