Australian share futures are pointing to a modestly firmer open after US markets closed higher overnight, but the local market remains under pressure after a sharp sell-off driven by renewed fears of an oil-led inflation shock. ASX 200 futures were up 5 points, or 0.1%, to 8614, after the S&P 500 rose 0.4% in New York.
The S&P/ASX 200 fell 92.3 points, or 1.06%, to 8579.5 on Thursday, giving back earlier gains as investors reacted to a sharp rebound in oil prices and increasingly aggressive rhetoric from US President Donald Trump toward Iran. The index had been up as much as 0.4% during the morning session before sentiment deteriorated and the market swung decisively into the red.
The move reflected growing concern that higher energy prices could prolong inflation pressures just as markets had begun to hope the Middle East conflict might be nearing an end. Rising bond yields and fresh uncertainty triggered a broad risk-off move across the local bourse, quickly unwinding optimism from the prior session. Brent crude spiked as much as 5% to around US$107 a barrel during the session, amplifying concerns about the outlook for global growth and interest rates.
Tech stocks slump while energy pares losses
The sell-off was most severe in growth sectors. Technology stocks, which had been broadly flat before Trump’s remarks, dropped 3% as investors moved away from risk assets. Zip fell 8.2% to $1.58, Life360 lost 5.9% to $18.70, WiseTech Global declined 4.3% to $37.90, NextDC dropped 3.8% to $11.30 and Block shed 4.1% to $84.50.
Gold stocks were also hit after bullion reversed earlier gains and fell as much as 2%. Greatland Resources, which had surged more than 5% earlier in the session, closed down 1.4% at $12.85. The retreat suggested traders were rapidly reassessing the scale of safe-haven demand after initially positioning for a softer geopolitical tone.
Energy stocks, by contrast, recovered from early weakness as oil prices remained elevated. The sector was down more than 3.3% in the morning but finished just 0.4% lower. Santos rose 1.4% to $8.08, while Karoon Energy staged one of the day’s biggest turnarounds, moving from a 4% loss in morning trade to close up 6.5% at $2.12.
Wall Street edges higher as investors back tech
US stocks closed higher overnight, with technology names again leading the advance. Investors were supported by resilient economic data and continued hope that progress toward a Middle East ceasefire could still emerge, even as geopolitical risks remain elevated.
Netflix rose 0.27% after an upgrade from Goldman Sachs, while Alphabet, Apple and Amazon each gained more than 1%. Tesla was the notable laggard, falling 2.2%.
Inflation and energy fears cloud European outlook
European markets have been unsettled by the jump in oil prices and the prospect of prolonged regional instability.
Investors are increasingly concerned that any sustained disruption to energy flows could reignite inflation and push policymakers toward a more hawkish stance. Eurozone inflation came in at 1.9% in February 2026, up from 1.7% in January, while core inflation rose to 2.4%, adding to concerns about price pressures.
Commodities and currencies: Oil leads, gold softens, dollar eases
WTI crude traded at US$112.74, extending its recent surge as markets priced in the risk of supply disruption and potential strikes on Iranian energy facilities.
Gold pulled back to US$4649, down 0.57%, as tentative ceasefire hopes reduced immediate haven demand. In currency markets, the softer US dollar helped lift the Australian dollar to US$0.6919, while the euro rose to US$1.1543 and sterling to US$1.3236. USD/JPY edged up to 159.69.