ASX 200 futures are pointing to a weaker open this morning, down 51 points (-0.58%) at 8:30 am AEDT, as a sharp tech-led selloff on Wall Street capped a volatile week for global markets.
US equities closed firmly in the red — the Nasdaq tumbled 1.7%, the S&P 500 slid nearly 1.1% and the Dow dipped 0.5% — with sentiment shaken by renewed concerns that AI spending is racing ahead of profits. Higher long-end Treasury yields, driven by hawkish Federal Reserve commentary, added further pressure and kept investors firmly in risk-off mode.
The downbeat offshore lead is likely to interrupt Friday’s strong rally on the ASX, where the benchmark surged 1.23% on broad-based gains across gold, resources, financials and healthcare.
Wall Street: Tech unwinds as margin fears escalate
The week ended with investors rotating out of high-growth tech after several sector heavyweights delivered unwelcome surprises.
Broadcom plunged more than 11% after warning that margins will narrow despite reporting a hefty US$73 billion order backlog — a reality check for traders who had been banking on ever-expanding returns from AI infrastructure. Oracle also remained under pressure as concerns lingered around its capital commitments and cloud build-out timeline.
The weakness wasn’t contained to megacaps: the Philadelphia Semiconductor Index shed more than 5%, Bitcoin slipped back below US$90,000, and risk appetite faded more broadly. Defensive sectors such as consumer staples were the only real pockets of green.
Yields reinforced the mood. The US 10-year pushed back above 4.18%, while mixed commentary from Fed officials highlighted a widening divide between those pushing for caution on inflation and those arguing that cuts remain appropriate next year.
European markets followed Wall Street lower, while Asian equities finished the week on firmer footing, with Japan, Hong Kong and mainland China all posting gains ahead of a dense run of economic data.
ASX and small caps: Rally meets resistance
The ASX 200 enjoyed a strong finish last week, climbing 105 points (+1.23%) on Friday. Strength in gold (+4.5%), broader resources (+1.9%), financials (+1.6%) and healthcare (+1.5%) did much of the work.
Today, that momentum looks set to fade.
Local tech names — already hit hard in recent months — may remain under pressure as global peers retreat sharply. Resource stocks are likely to soften on weaker commodity prices, with copper (-2.5%), silver (-2.4%) and uranium (-6%) all sliding in offshore trade.
A few company-specific items on watch:
- Ioneer is reportedly weighing a potential bid involving Rio Tinto’s US boron unit.
- CSL faces a fresh target cut and downgrade from Macquarie.
- Several income-focused names trade ex-dividend this week, including FleetPartners (FPR) today.
Small caps will be navigating the same headwinds, though gold names could again find support with bullion holding near record levels.
One notable early update comes from Far East Gold Ltd (ASX:FEG), which reported further high-grade assays from the Sua prospect in Papua. New holes KSD025 and KSD026 confirmed and extended historical mineralisation, returning multiple stacked high-grade veins — including intervals up to 51 g/t Au — and demonstrating that the key zone remains open down-dip and along strike.
Commodities and currencies
Commodities eased across the board:
- Gold held firm near US$4,298/oz, supported by expectations that global rates are drifting lower even as yields tick higher.
- Copper fell sharply to US$5.28/lb, unwinding Thursday’s record spike.
- WTI crude softened to US$57.44/bbl amid ongoing supply-glut concerns.
- Iron ore edged down to US$106/t, weighed by weak Chinese demand signals.
The Aussie dollar is consolidating above US66¢, trading around 0.665, after a steady week supported by improving domestic indicators.
Bitcoin is lower, hovering around US$88,500–90,000 following risk-off positioning.
What’s on today
A busy data window opens this afternoon, led by China’s November data dump — retail sales, industrial production and fixed asset investment — which could set the tone for commodity markets.
RBA Assistant Governor Andrea Brischetto delivers a speech at 1:20 pm AEDT, with traders watching for any colour on the bank’s 2026 policy path. Overseas, the US Empire State manufacturing index and NAHB housing market survey are due tonight.
Later in the week, markets will parse UK CPI, the ECB decision, and NZ GDP.