Australian shares set to rise after mixed Wall Street session

The news: The Australian sharemarket is set to open higher despite a mixed session on Wall Street where investors rotated out of AI-linked stocks and added some laggards to their portfolios.

The numbers: The Dow Jones index rose for a fifth straight session to end 0.66% higher, but the broader S&P 500 lost 0.29% and the tech-heavy Nasdaq dropped 1.09%. In the local market, ASX 200 futures were up 36 points or 0.47% to 7,761 points at 7:00am AEST on Tuesday.

The context: The S&P 500 and Nasdaq ended lower on the rotation out of technology stocks whose outsized gains have led this year's rally. Still, nine of the S&P 500's 11 major industry sectors gained ground. The biggest event on investors' radar for the week is Friday's personal consumption expenditures price index report, the US Fed's preferred measure of inflation, which is expected to show a moderation in price pressures.

Investors still expect about two rate cuts this year, pricing in a 61% chance of a 25-basis-point cut in September. The Fed's own latest projection is for one rate cut likely in December. Other data this week include durable goods, weekly jobless claims and final first-quarter US GDP figures.