Australian shares set to rise despite mixed Wall Street session
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The news: The Australian sharemarket is set to start higher after a subdued session on Wall Street as investors booked profits in technology shares ahead of the US Federal Reserve’s rate decision this week.
The numbers: The Dow Jones index ended 0.55% higher at a fresh record high, while the broader S&P 500 eked out a 0.13% gain and the tech-heavy Nasdaq slipped 0.52%. In the local market, ASX 200 futures were up 53 points or 0.65% to 8,168 points at 7am AEST on Tuesday.
The context: A drop in technology stocks weighed on the S&P 500 and the Nasdaq as investors assessed the likelihood of an upsized rate cut from the Federal Reserve this week.
Apple was the biggest drag after an analyst at TF International Securities said demand for its latest iPhone 16 models was lower than expected while demand concerns also weighed on chipmakers like Nvidia and Micron.
Markets have rallied since the start of this year on expectations the Fed would begin loosening its monetary policy, while data has suggested the economy could avoid entering a recession. However, market expectations on the size of the rate cut have been volatile in recent days and are currently pricing in a 59% chance for a 50-basis-point cut, according to CME's FedWatch Tool.
The source: Reuters
