Australian shares to start higher after Wall Street gains
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The news: The Australian sharemarket is poised to open higher following gains on Wall Street, where investors returned to mega cap growth stocks.
The numbers: The Dow Jones index ended 0.32% higher while the broader S&P 500 gained 1.08% and the tech-heavy Nasdaq climbed 1.58%. In the local market, ASX 200 futures were up 55 points or 0.70% at 7,956 points at 7:00am AEST on Tuesday.
The context: All three major US stock benchmarks rebounded after a week of losses, with buyers returning to Alphabet, Meta Platforms, Nvidia and Tesla.
Chief among other factors on traders' minds was a reassessment of the state of the presidential race after US President Joe Biden announced his withdrawal and endorsed Vice President Kamala Harris' candidacy for the November election on Sunday. Biden's exit could prompt investors to unwind trades on bets that a victory for Republican Trump would increase US fiscal and inflationary pressures.
It comes amid anxiety over quarterly earnings, including from two of the so-called Magnificent Seven companies — Alphabet and Tesla — this week, with their results a test of whether the recent rally in top-tier high-momentum stocks is tenable.
The source: Reuters
