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Highlights:
The ASX 200 marked its sharpest rise in over two years, recovering part of Monday’s steep decline
Technology and energy stocks posted significant gains, aided by global rate cut speculation
Financial, mining, and consumer sectors also advanced despite ongoing trade-related uncertainty
The Australian sharemarket rebounded sharply following a substantial downturn, with the technology sector leading the gains. Major software and IT firms saw strong price recoveries, with WiseTech (ASX:WTC), Xero (ASX:XRO), Technology One (ASX:TNE), and Life360 (ASX:360) all posting notable increases. These moves came as global equity markets appeared to stabilize after recent selloffs triggered by international trade tensions.
Gains in tech were partly buoyed by improved sentiment from overseas, as US equity futures pointed upward. This helped offset the impact of a volatile Wall Street session the previous day, where indices swung dramatically following tariff-related announcements from the US government.
Energy Stocks Rebound With Oil Prices
The energy sector experienced a notable recovery alongside a rebound in global oil benchmarks. Leading producers Woodside (ASX:WDS) and Santos (ASX:STO) saw significant price appreciation as oil prices steadied after a multi-day decline. Brent crude moved above previous session lows while West Texas Intermediate also saw a modest rise.
These developments followed signs of easing pressure in global commodity markets, with reduced volatility contributing to sector-wide advances on the Australian bourse.
Broad-Based Market Strength
All eleven industry groups on the ASX 200 advanced through the day, signaling widespread participation in the rebound. Consumer-related companies gained ground as sentiment improved. Wesfarmers (ASX:WES), which owns Bunnings and Kmart, climbed higher alongside electronics retailers JB Hi-Fi (ASX:JBH) and Harvey Norman (ASX:HVN). Aristocrat Leisure (ASX:ALL) also advanced.
Despite a dip in iron ore prices, mining heavyweights BHP (ASX:BHP), Rio Tinto (ASX:RIO), and Fortescue Metals Group (ASX:FMG) all trimmed recent losses. Coal producers Yancoal (ASX:YAL) and Whitehaven Coal (ASX:WHC) contributed to gains within the broader materials sector.
Financial stocks, which comprise a major portion of the index, added further support to the rally. Commonwealth Bank (ASX:CBA) recorded a solid advance, while peers Westpac (ASX:WBC), National Australia Bank (ASX:NAB), and ANZ (ASX:ANZ) also traded higher.
Healthcare stocks contributed modestly to the market’s climb, with CSL (ASX:CSL) and Cochlear (ASX:COH) both improving. Cochlear confirmed it would be able to ship devices into the US without triggering new tariff charges, further boosting sentiment within the sector.
Global Uncertainty Remains
The recovery followed a dramatic session on Wall Street where markets fluctuated sharply amid conflicting messages from the US administration on trade policy. A brief surge in US equities was triggered by unconfirmed speculation of a pause in tariff actions, which was later denied by official sources.
US markets ultimately ended mixed, with indices reversing initial rallies. The Dow Jones fell, while the S&P 500 and Nasdaq recorded more modest changes. The volatile session underlined persistent global uncertainty tied to trade disputes, which continues to influence Australian market direction.
Currency Moves and Policy Expectations
The Australian dollar also strengthened slightly after falling to multi-year lows in the previous session. Market participants responded to forecasts from a major bank predicting a sizeable rate cut from the Reserve Bank of Australia in response to declining business and consumer sentiment.
Rate cut speculation contributed to positive momentum on the domestic exchange, providing a temporary counterweight to geopolitical concerns and trade instability.
