Australian stocks set for gains after rally on Wall Street

The news: The Australian sharemarket is set for gains after major US indices ended higher overnight as jobs data firmed hopes of a pause in interest rate hikes.

The numbers: The Dow Jones index ended 0.85% higher, while the broader S&P 500 climbed 1.45% to log its strongest one-day gain since June 2. The tech-heavy Nasdaq added 1.74%. In the local market, ASX 200 futures were trading 47 points or 0.66% higher at 7209 points at 0700 AEST on Wednesday.

The context: The gains on Wall Street, led by Nvidia and Tesla, came after the data showed US job openings fell more than expected in July, signalling easing labour market pressures and raising hopes that the Federal Reserve will keep rates steady at its September meeting. Non-farm payrolls data on Friday will offer investors more clarity. Local earnings due today include Brambles, Healius and Flight Centre.

What they said: "Investors are of the mindset that 'You know what, maybe interest rate hikes are indeed behind us. So let's buy back into stocks,'" said Sam Stovall, chief investment strategist at CFRA Research told Reuters.