Australian shares are poised to extend gains on Thursday, with ASX 200 futures up 58 points, or 0.6%, to 9138, tracking a firm lead from Wall Street as investors await Nvidia’s quarterly result after the US close.
The positive open follows a record-setting session locally, with momentum in technology and resources offsetting ongoing inflation concerns.
The S&P/ASX 200 rose 106 points, or 1.18%, to a record 9128.3, as investors rotated back into growth and cyclical names.
Technology stocks led the advance, with the Information Technology index (XIJ) jumping 5.9% as beaten-down AI-linked names rebounded. Resources (XJR) gained 2.5% on firmer commodity prices.
Among the standouts, Wisetech Global (ASX:WTC) surged 11.0%, Siteminder (ASX:SDR) added 10.5% and Megaport (ASX:MP1) climbed 9.8%. In the materials space, Fortescue (ASX:FMG) rose 4.7% and BHP Group (ASX:BHP) gained 3.2%.
Laggards were limited. Communication Services (XTJ) fell 1.5% and Consumer Discretionary (XDJ) slipped 0.4%, reflecting stock-specific earnings reactions and continued sensitivity to the interest rate outlook. Telstra (ASX:TLS) dropped 3.0%, Domino’s Pizza Enterprises (ASX:DMP) fell 11.1% and Adairs (ASX:ADH) lost 8.2%.
The broad-based rally suggests investors are increasingly willing to look through sticky inflation data, with risk appetite returning to both growth and cyclicals.
Earnings movers drive stock-specific volatility
Reporting season continued to deliver sharp share price reactions.
- Woolworths Group (ASX:WOW) rallied 13.0% after delivering an earnings beat and upgrading its trading outlook.
- Tabcorp Holdings (ASX:TAH) soared 23.5% on stronger-than-expected EBITDA and a higher dividend.
- DroneShield (ASX:DRO) gained 12.6% on strong revenue and profit growth, while Iress (ASX:IRE) rose 9.6% after outlining an improved profit outlook supported by cost reductions.
On the downside, Domino’s cut its dividend and flagged weaker sales trends, sending shares down 11.1%. Flight Centre (ASX:FLT) slipped 3.2% despite reaffirming guidance, with investors appearing to have already priced in the update.
Wall Street climbs ahead of Nvidia result
US markets closed higher, with the S&P 500 and Nasdaq reaching two-week highs as heavyweight technology stocks advanced ahead of Nvidia’s quarterly result.
The Dow Jones rose 0.6%, the S&P 500 gained 0.8% and the Nasdaq added 1.3%. The S&P 500 information technology index climbed 1.8%, while communication services rose 1.0% and financials gained 1.7%.
Nvidia rose 2.2% ahead of its earnings release, with investors focused on whether profits reflect Big Tech’s planned US$630 billion capital spending budget for 2026. The semiconductor index rose 1.6% to a record high.
Elsewhere, Axon Enterprise surged 18% after beating fourth-quarter profit estimates. Lowe’s fell 4.8% on weaker-than-expected sales and profit guidance, while GoDaddy dropped 14% after disappointing earnings guidance.
Europe advances
European markets also advanced, with the FTSEurofirst 300 up 0.7% and the UK FTSE 100 rising 1.2%. Banking stocks jumped 2.8%, led by an almost 8% gain in HSBC after it raised a key earnings target.
Mining and utilities stocks hit all-time highs, while Diageo slumped 12.7% after cutting its sales and profit outlook and reducing its dividend.
Currencies and commodities
Currency markets were mixed, with the euro at US$1.1807, the yen weakening 0.5% to JPY156.43 and the Australian dollar slightly firmer at US$0.7112.
Commodity markets provided further support for resources names.
- Gold rose 0.64% in Asian trade to US$5209/oz, while silver climbed 3.3% to US$90.40/oz amid ongoing safe-haven demand.
- Lithium prices continued to rebound in China, with carbonate futures up 4% and spodumene rising 6.6%. The move lifted Liontown Resources (ASX:LTR) 9.4%, while Lynas Rare Earths (ASX:LYC) advanced 7.9% on improving rare earths pricing signals.
- Base metals were also firmer, with copper up 1% and aluminium 2%, although iron ore futures edged 0.2% lower to US$99.07.
- Oil prices softened, with Brent crude down 0.4% to US$70.90 per barrel after a larger-than-expected 16 million barrel build in US crude inventories outweighed geopolitical risks.
Reporting season continues
Locally, reporting season remains in focus, with Karoon Energy, Monash IVF, Cleanaway Waste, Ridley Corp, Super Retail, Worley, Atlas Arteria, Cromwell Property, IDP Education, Qantas, Waypoint REIT, Swoop and Ramsay Health Care among companies due to report.