The ASX looks set for a cautious start after a bruising Tuesday sell-off and another jittery night on Wall Street. ASX 200 futures were down 10 points, or 0.11%, at 8:30 am AEDT, pointing to a flat-to-weaker open as investors brace for Nvidia’s all-important quarterly numbers due on Thursday.
Overnight, US equities extended their slide for a fourth straight session, with the S&P 500 down 0.83% but recovering from far steeper intraday losses. Breadth was surprisingly firm — the equal-weight index finished marginally higher — but the tone remained fragile as traders rotated heavily out of discretionary and tech and into defensives.
Risk appetite remains thin across global markets, and local investors will still be processing yesterday’s 1.9% drop in the ASX 200 — the worst session since early April’s “Liberation Day” tumble — where every major sector closed lower.
Global markets cautious ahead of Nvidia’s make-or-break moment
US markets chopped through another volatile session. Heavy early selling eased as buyers stepped in, but sentiment stayed on edge. Tech and consumer discretionary again led declines, while energy, healthcare and real estate posted small gains.
- S&P 500: -0.83%
- Dow Jones: -1.07%
- Nasdaq Composite: -1.21%
- Russell 2000: +0.62%
Japan was the standout underperformer in Asia, sliding more than 3% on concerns around valuations and renewed diplomatic tension with Beijing. Europe was sharply lower across the board, with Germany’s DAX down 1.7%.
Bitcoin briefly dipped below US$90,000 before rebounding, but remains nearly 30% off its October peak. The VIX pushed toward 24, and US 10-year Treasury yields eased modestly to 4.12%.
The AI trade remains the biggest pressure point. Bank of America’s latest fund-manager survey flagged “long Mag 7” as the most crowded trade globally, while the proportion of managers calling AI the top tail risk jumped to 45%. A material cut in discretionary and tech exposure emphasises the turn in sentiment.
Nvidia will set the tone for Thursday: options pricing implies a potential 7% move on the result — roughly US$350 billion in market cap.
ASX yesterday: Broad-based sell-off with tech and gold hit hardest
The local market endured a deep, across-the-board retreat on Tuesday, mirroring global risk aversion.
- ASX 200: 8,469.1 (-1.94%)
- All Ords: -1.99%
- Small Ords: -2.66%
- All Tech: -4.34%
Every major sector closed in the red, though defensives held up better:
- Tech: -5.99%
- Materials: -3.00%
- Energy: -1.78%
- Financials: -1.90%
Gold and copper producers followed their commodity prices lower, while consumer staples (-0.20%) and healthcare (-0.52%) limited losses but couldn’t escape the downside.
Commodities & currencies: Gold steadies, copper extends its slide
Gold caught a bid overnight, rising 0.57% as investors moved back toward defensive assets. Copper fell for a fourth session and is now trading near three-week lows amid softer sentiment in industrial metals.
- Gold: US$4,069/oz (+0.57%)
- Copper: –0.46%
- WTI crude: +1.27%
- AUD/USD: 0.651 (+0.25%)
Bitcoin gained 1% but remains volatile after its sharp reversal from record highs earlier this quarter.
What’s on today
A handful of local names will be in focus today:
- Nufarm posted underlying earnings of $302.5 million for financial year 2025, slightly ahead of expectations, though it delivered an underlying net loss of $22.9 million.
- Webjet confirmed receipt of a non-binding indicative takeover approach from Helloworld Travel and released first-half results broadly in line with last week’s preliminary update.
- Sandfire Resources is reportedly interested in BHP’s West Musgrave nickel project, according to The Australian.
- AGMs are scheduled for IGO, Medibank Private, Ridley Corporation, Seek and EML Payments.
In early small-cap news flow, Prescient Therapeutics Ltd (ASX:PTX, OTC:PSTTF) gained EU Orphan Drug Designation for PTX-100 in cutaneous T-cell lymphoma, adding 10 years’ potential market exclusivity and aligning with its existing US regulatory designations.
On the data front, the Australian Wage Price Index lands at 11:30 am AEDT, followed tonight by UK inflation and, early tomorrow, the latest readout from the US Federal Reserve minutes.
Looking ahead
With futures pointing to a flat start and few catalysts before Nvidia’s earnings drop, the local market is likely to stay cautious. Tech may remain under pressure, while defensives and gold-linked names could continue to attract interest. A surprise in wage growth would add currency volatility into the mix, potentially reshaping expectations for the RBA’s path into early 2025.