The ASX 200 is on track for a weaker open, with futures down 64 points or 0.74% as of 8:30 am AEST, following a mixed but ultimately negative session on Wall Street. A strong start driven by big tech earnings fizzled into red territory as renewed tariff uncertainty and firm US economic data dampened investor sentiment.
The S&P 500 slipped 0.37% after climbing as much as 1% earlier in the session. The Nasdaq gave up a 1.5% gain to finish flat, while the Dow fell 0.74%. Meta and Microsoft delivered impressive results — Meta jumped 11.2% and Microsoft rose 3.9% — but those gains were overwhelmed by falls in names like Tesla, Alphabet and Qualcomm.
Investors are now bracing for a critical US jobs report tonight, while tariff noise from Washington continues to rattle markets and markets digest the Fed’s decision to hold rates unchanged.
ASX 200 holds up despite materials drag
The ASX 200 edged 13.6 points lower on Thursday, or 0.16%, but the surface-level decline masked a more resilient session beneath.
Eight of 11 sectors gained ground, led by Technology (+1.34%) and Consumer Discretionary (+1.11%) following stronger-than-expected retail sales data for June. Banks and Real Estate also rallied modestly, buoyed by Wednesday’s cooler inflation read, which has sharpened expectations for rate cuts.
The biggest drag came from Materials (-2.56%), as industrial metals took a dive, especially copper, which collapsed over 4% overnight. Energy (-0.46%) also slipped on weaker oil prices and tariff jitters.
The Small Ords index shed 0.44% to 3,338.3, while the All Tech climbed 1.21%.
Wall Street fades tech gains, braces for tariffs and jobs data
US stocks opened strong but were unable to hold the line. Traders sold into strength after Federal Reserve Chair Jerome Powell dampened rate cut hopes and President Trump escalated trade threats.
Despite Microsoft hitting a US$4 trillion valuation and Meta reporting standout AI-driven ad revenue growth, the broader market turned risk-off.
Trump’s latest round of trade salvos included:
- A 90-day tariff reprieve for Mexico
- A formal warning to Canada
- Executive orders ready to go for countries without deals
- Demands to major pharma companies for price cuts
Copper markets were rocked after the White House announced it would target semi-finished imports, not refined copper, leading to a record intraday collapse in copper futures as traders reversed hedges.
The CBOE Volatility Index (VIX) surged 8% to 16.72.
Commodities pull back on mixed signals
- Gold rose 0.5% to US$3,291/oz as investors sought safety amid tariff uncertainty.
- Copper plunged 4.5% to US$8,810/t — its sharpest single-day fall this year.
- WTI crude dropped 0.83% to US$69.36/barrel on speculation of another OPEC supply boost.
- Iron ore held steady near US$99.07/t, though market sentiment remains cautious amid weak Chinese PMI data.
In lithium, battery tech ETFs were down 2.4%, while strategic metals and uranium ETFs also posted notable declines.
The AUD slipped 0.04% to US$0.6423.
On the radar today
Economic data drops locally and globally today, including:
- Australia’s Q2 Producer Price Index (PPI) at 11:30 am AEST
- China’s Caixin Manufacturing PMI at 11:45 am
- Eurozone inflation at 7:00 pm
- The US Non-Farm Payrolls and ISM Manufacturing PMI late tonight
Markets are particularly sensitive to the US jobs report, which could clarify the Fed’s near-term rate path after Powell’s latest remarks.
Corporate highlights:
- ResMed posts 37% earnings-per-share growth and lifts dividend by 13% to 60 cents/share;
- Beach Energy’s CEO signals acquisition appetite despite this week’s $500 million impairment;
- SKS Technologies delivers stronger-than-guided full-year pre-tax profit of $20.8 million.