Australian shares are expected to open sharply lower on Friday, with ASX 200 futures down 134 points (-1.58%) at 9:40 am AEDT, after a late-session reversal on Wall Street erased early gains. The weak offshore lead may quickly unwind Thursday’s strong local rebound, which saw the ASX 200 rise 1.24% as buyers stepped back into resources and technology stocks.
Thursday’s session was one of the broadest advances in weeks. Materials, tech and small caps all rallied, with renewed interest in lithium, uranium and critical minerals names underpinning the move. Yet the global mood shifted overnight, suggesting investors may take a more defensive approach today.
Wall Street sinks as tech-led rally snaps
US equities turned lower on Thursday, with the S&P 500 sliding 1.56%, the Nasdaq dropping 2.15% and the Dow down 0.84%. The session began strongly after Nvidia delivered another set of better-than-expected results, but enthusiasm faded as concerns about stretched valuations resurfaced.
The turning point came with the delayed US September jobs report. Non-farm payrolls rose by 119,000, beating forecasts, while the unemployment rate edged up to 4.4%. Wages were steady at 3.8% year-on-year. The mixed result complicated expectations for further rate cuts, with markets scaling back the probability of another move this year.
Treasury yields eased regardless — the 10-year slipped towards 4.10% — as traders focused more on the rise in unemployment. But volatility jumped sharply. The VIX surged into the mid-20s, signalling mounting uncertainty as investors weighed a still-tight labour market against a cooling economy.
Tech bore the brunt of the pullback. Nvidia reversed a more than 5% gain to finish lower, and semiconductor stocks broadly weakened. Several AI and cloud names also retreated, while consumer tech was mixed despite a strong session for Walmart, which raised its annual outlook again.
European markets fared better, posting modest gains after Nvidia’s results lifted sentiment earlier in the day. Asian trading was mixed, with Japan stronger and China softer amid ongoing speculation over housing-market support.
Local rebound meets a tougher offshore lead
Thursday’s rally on the ASX was driven by renewed appetite for beaten-down cyclical sectors. Materials rose more than 2%, helped by firm demand for lithium, uranium and rare earths stocks. Technology also outperformed, while financials and consumer-facing sectors saw moderate gains.
Oil was little changed overnight, with WTI around US$59 a barrel and Brent near US$63. Gold eased slightly following the US data, with spot metal trading near US$4,080 an ounce. Copper lost ground, while iron ore held close to US$104 a tonne. The Australian dollar fell to about US64.4 cents as risk sentiment deteriorated.
Given the scale of Thursday’s gains and the steep declines across global tech and commodities ETFs overnight, the ASX is likely to face renewed selling pressure at the open.
Corporate focus and looking ahead
A busy day of AGMs will dominate local corporate news, with WiseTech Global, Macquarie Technology and Lovisa among those meeting shareholders. Lovisa reported a 26.2% year-on-year increase in global sales over the opening 20 weeks of FY26.
Broker moves were mixed but included upgrades for Charter Hall Group, Ampol and Viva Energy.
Locally, S&P Global PMIs will be released, offering an early read on November activity. Around 10 companies will host AGMs, keeping corporate coverage busy. Internationally, attention turns to PMI results across Europe and the US, along with updated Michigan consumer sentiment figures.
After a volatile week for global equities — and a sharp late-session reversal in the US — today’s trade will test whether Thursday’s rebound was the start of renewed risk appetite, or simply a brief pause in a broader downtrend.