ASX Edges Higher at Midday as Tech and Data Centre Stocks Rally

May 01, 2025 12:39 PM AEST | By Team Kalkine Media

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ASX Edges Higher at Midday as Tech and Data Centre Stocks Rally — Image source: Shutterstock

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Highlights

ASX lifted by tech-led gains and global market rebound

DigiCo (ASX:DXI) jumps nearly 8% on AI-driven optimism

Iron ore slide weighs on major miners

The Australian share market witnessed a modest midday rebound on Thursday, buoyed by gains in the technology sector and renewed optimism from Wall Street’s late rally. The S&P/ASX 200 Index rose 0.2%, gaining 17.8 points to reach 8144 by noon, while the All Ordinaries matched the advance. Technology emerged as the leading sector, with nine out of eleven industry groups trading in the green.

This local upswing mirrored a significant turnaround in the US, where the S&P 500 reversed a steep 2% decline to close higher. The shift in sentiment came despite weaker-than-expected US GDP figures, which indicated the world’s largest economy contracted for the first time since 2022. The downturn was driven by slower consumer spending and reduced business imports. However, hopes for a softer economic landing were supported by steady inflation readings and a strong uptick in US consumer spending. Reports that the US was working to ease trade tensions with China also helped ease market nerves.

Earnings results from tech giants added further optimism. Microsoft and Meta both exceeded quarterly expectations, with Microsoft’s stock surging more than 7%. The results sparked a rally in data centre-related stocks, with DigiCo Infrastructure REIT (ASX:DXI) climbing 7.8% and NextDC (ASX:NXT) gaining 5.4%. In addition, WiseTech Global (ASX:WTC) jumped 5.5%, reinforcing the tech-driven momentum on the ASX.

The local rebound was further supported by Commonwealth Bank (ASX:CBA), which rose 0.6% despite early profit-taking pressures. Meanwhile, other major banks including National Australia Bank (ASX:NAB), Westpac (ASX:WBC), and ANZ Group (ASX:ANZ) saw slight declines.

On the downside, weakness in iron ore markets continued to weigh on miners. China’s factory output registered its steepest contraction since September, dampening demand expectations. This dragged down BHP Group (ASX:BHP) by 1.4% and Rio Tinto (ASX:RIO) by 1.1%. The benchmark iron ore futures in Singapore fell to $US95.40 per tonne.

In corporate developments, Woolworths Group (ASX:WOW) edged up 0.6% as its first-quarter e-commerce revenue rose to $2.2 billion, boosting overall sales marginally.

This session reflects broader themes impacting the ASX200, particularly the influence of global tech trends and commodity fluctuations. Investors may also continue to track resilient ASX dividend stocks as a strategy amid market volatility.

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