Australian market set to rise as US tech sell-off lifts ASX and the Aussie dollar falls
The ASX 200 futures point to a higher open after Wall Street rotated out of tech and AI stocks, while the Australian dollar slipped to its lowest level since early July.
Australian equities are expected to start the day higher, with ASX 200 futures climbing roughly 1% to around 8,839 points, following a Wall Street session that ended in the green despite a retreat from technology and AI stocks. The shift away from high-growth tech has lifted broader market sentiment, supporting the Australian index. Conversely, the Australian dollar fell as much as 1.1% overnight, hitting its lowest level since early July after September employment data revealed a 4.7% unemployment rate, the highest in five years.
This surprise in the labour market prompted traders to lower the odds of an imminent Reserve Bank interest-rate increase, even as the nation celebrated the Melbourne Cup. Other global benchmarks showed modest advances, with the S&P 500 up 0.38% and the Nasdaq up 0.16%, while gold rose 1.5% and Brent crude slipped slightly. Commodity prices moved lower, with iron ore down 0.6% and Bitcoin gaining 0.8%.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 CoreWeave’s shares dropped 6% and its 2031 bond yields rose above 16% as investors fret over its $50 billion debt load and AI-related borrowing.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
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