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Australian Shares Set to Rise as Wall Street Rally Fades and Oil Prices Tumble
Australian shares set to rise as Wall Street rally fades and oil prices tumble, with futures up 0.7 per cent.
Key points
- The S&P 500 slipped 38.67 points to 7,541.40 after erasing an early gain of 1.1 per cent.
- Alphabet shares fell more than 12 per cent on Thursday, their worst day on record, after slower search growth.
- Lumentum shares fell 18.6 per cent after Marvell said it would give 4.5 of its shares for each Lumentum share.
Why it matters. Worries that AI spending may not yield enough profit are weighing on tech shares, while a rate rise is tipped at the Reserve Bank's decision at 2.30pm AEDT.
Futures pointed to a 58-point, or 0.7 per cent, rise for the Australian sharemarket at the open, after the S&P 500 sank 0.5 per cent from an early gain of 1.1 per cent. The Nasdaq composite fell 1.1 per cent as tech and AI shares stayed shaky, and Brent crude slid 7.6 per cent to $US104.77 a barrel. Alphabet fell more than 12 per cent on Thursday, its worst day on record, and Marvell Technology dropped 12.7 per cent after saying it would buy Lumentum.
Latest updates
Australian Shares Set to Rise as Wall Street Rally Fades and Oil Prices Tumble
US stocks rallied early in Monday trading but gave up most of their gains as technology and artificial intelligence companies remained under pressure after last week's sell-off. The S&P 500 sank 0.5 per cent after erasing an early gain of 1.1 per cent. The Dow Jones Industrial Average rose 213 points, or 0.4 per cent, while the Nasdaq composite fell 1.1 per cent. Oil prices also tumbled, and the Australian share market was set to rise on the day of the Reserve Bank of Australia's rate decision. The moves follow a sell-off led by tech and AI stocks that rattled global markets the previous week.