The ASX is poised to open higher on Tuesday, with futures up 41.1 points, or 0.48%, at 9:30 am AEDT after US tech stocks powered Wall Street for a second straight session. Local investors return today following Monday’s broad-based rebound, when the ASX 200 climbed 1.29% and snapped a choppy run of three triple-digit swings in as many sessions.
Yesterday’s local gains were concentrated in rate-sensitive growth sectors as traders continued to price in a friendlier global rate backdrop. Tech, healthcare, communication services and real estate all outperformed, while energy was the only major sector to finish in the red.
Wall Street soars as Fed’s Waller backs December rate cut
US equities surged overnight after Federal Reserve Governor Christopher Waller openly signalled support for a rate cut at the December meeting — a clear shift after weeks of mixed central-bank messaging. Waller emphasised mounting labour-market slack, saying he is “advocating for a rate cut at the next meeting”.
That was enough to snap markets out of last week’s volatility. The Nasdaq jumped 2.7%, the S&P 500 climbed 1.6%, and the Dow added 0.5%, with gains led decisively by megacaps. Alphabet rallied more than 6%, Meta rose 3%, and chipmakers staged a strong rebound, with Broadcom up 11% and Micron up 8%.
Tesla also gained nearly 7% after Elon Musk said the company is close to finalising its latest in-vehicle AI chip, the A15, while early work has begun on the next-generation A16.
The backdrop remains complicated, however. Novo Nordisk slid nearly 6% after its oral Ozempic failed an Alzheimer’s trial, dampening hopes that GLP-1 drugs could expand into new treatment categories. Bitcoin steadied above US$88,000 after last week’s brutal liquidation of leveraged positions.
European markets were firmer but muted, with tech stocks carrying most of the gains as investors assessed reports of progress on a new US–Ukraine peace proposal. Oil exporters and defence names softened on that theme.
Bond markets strengthened at the long end, with the US 10-year yield easing back to 4.03%, its lowest point in nearly a month. Rate-cut expectations for December climbed back above 80%.
ASX: Growth sectors lead, commodities mixed
The ASX 200’s 108-point gain on Monday was driven by enthusiasm for sectors that tend to benefit from lower borrowing costs. Tech, healthcare and communication services rose between 1.6% and 2.4%, while real estate and utilities also recorded strong sessions.
Resources were uneven. Broader miners edged higher, but lithium names lagged after fresh softness in Chinese futures. Energy stocks dipped as crude prices struggled to find traction.
Heading into today’s session, traders will be watching whether US tech momentum spills over again locally — particularly in the wake of another strong night for chipmakers and AI-heavy megacaps.
Commodities: Gold climbs, oil rebounds, iron ore edges higher
Gold extended its recovery, rising around 1% to trade above US$4,130 an ounce, supported by a softer US dollar and renewed conviction around imminent US rate cuts.
Oil prices strengthened, with Brent and WTI both up roughly 1.3%, as the market gave more weight to a December US rate cut than to speculation about a potential Ukraine peace framework.
Iron ore posted another gain, buoyed by policy support headlines out of China and new supply disruptions. Base metals were mixed: aluminium firmed, while copper eased modestly.
The Aussie dollar sits near US64.6 cents this morning after a small overnight lift.
What’s on today
Locally, Webjet Travel Group releases earnings and around 20 ASX-listed companies hold AGMs, with Star Entertainment Group's meeting likely to be in focus.
Overseas, a heavy slate of US data is due tonight, including retail sales, producer prices, home prices, consumer confidence and manufacturing surveys. Earnings are also scheduled from Alibaba, Dell, Workday, Best Buy and Kohl’s — providing fresh insight into US consumer and enterprise spending ahead of the holiday period.