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Highlights
- ASX 200 futures point lower after Wall Street’s technology-led rally faded overnight.
- Semiconductor weakness weighed on the Nasdaq as Micron tumbled sharply.
- Northern Star Resources and Iluka Resources remain in focus after key resources updates.
Australian shares are set for a softer start after Wall Street lost momentum overnight, with technology shares pulling back as semiconductor weakness dragged on the Nasdaq. The ASX 200 is expected to open lower as local traders weigh softer oil, weaker copper, rising bond yields and mixed global economic signals. The latest session also puts attention on ASX Technology Stocks as the global AI trade faces fresh scrutiny following heavy losses across chip-related names.
Wall Street loses momentum after tech rally fades
Major US benchmarks struggled overnight as the recent technology-led bounce began to unwind.
The Nasdaq slipped as chip stocks came under pressure, while the S&P 500 also finished lower. The Dow Jones Industrial Average was broadly flat, showing that weakness was concentrated more heavily in growth and semiconductor-linked areas.
The pullback followed a strong two-day move in technology shares, suggesting some traders moved to lock in gains as fresh rate concerns returned to the market.
Semiconductor stocks drag on sentiment
Semiconductor weakness was the clearest overnight pressure point.
Micron Technology fell heavily, while Intel, Nvidia and other chip-linked names also traded lower. The sector’s pullback came as the market reassessed the strength of the artificial intelligence infrastructure rally.
Although AI remains a dominant global theme, recent volatility shows that market expectations around earnings, pricing power and data-centre spending remain highly sensitive.
Meta bucks the tech weakness
Meta Platforms stood out as a major exception to the broader technology pullback.
The company rallied strongly after reports that it could build a cloud business selling excess AI computing capacity.
That move raised questions about competitive pressure across AI infrastructure and cloud computing markets, with some pure-play compute providers falling sharply.
The broader message for markets is clear: AI remains a major growth theme, but leadership within the theme may keep rotating.
Fed tone keeps rate risk alive
Interest rate expectations also returned to focus after Federal Reserve commentary reinforced concern around inflation.
Fresh comments from the Fed suggested inflation remains too high, reducing confidence that rate relief could arrive quickly.
Higher bond yields can pressure growth stocks because future earnings become less attractive when discount rates rise.
That dynamic helped explain why technology shares were more vulnerable than defensive or financial names overnight.
Commodities send mixed signals for the ASX
Commodity markets were also uneven heading into the local session.
Oil prices fell as Iran-related supply concerns eased, while copper also weakened. Gold moved higher, offering a more supportive backdrop for precious metals producers.
For the Australian market, these moves create a mixed setup. Energy and industrial metal names may face pressure, while gold producers could attract selective attention.
Northern Star Resources in focus
Northern Star Resources Ltd (ASX:NST) is likely to remain closely watched after reporting preliminary full-year gold sales above its stated guidance.
The company’s update showed stronger operational delivery across its major production hubs, with its KCGM mill expansion also remaining on schedule.
The announcement could place renewed attention on large Australian gold producers as bullion prices continue holding firm.
Iluka Resources strengthens rare earths supply pipeline
Iluka Resources Ltd (ASX:ILU) also enters focus after signing a long-term agreement linked to rare earths concentrate from VHM’s Goschen deposit.
The arrangement supports Iluka’s broader rare earths strategy and reinforces Australia’s growing role in critical minerals supply chains.
Rare earths remain strategically important because of their use in clean energy, defence, electric vehicles and advanced manufacturing.
Local company updates to watch
Several ASX-listed companies released important updates ahead of the session.
Kelsian Group Ltd (ASX:KLS) secured a ferry contract in Auckland, Lendlease Group (ASX:LLC) completed a major asset sale, and Perpetual Ltd (ASX:PPT) rejected a takeover proposal it viewed as insufficient.
These company-specific developments may drive selective stock movement even if the broader index opens lower.
Economic calendar remains important
Local and offshore data could influence sentiment throughout the session.
Australia’s balance of trade figures are due during the morning, while US nonfarm payrolls will be watched later for clues on labour market strength and interest rate expectations.
If US jobs data shows continued resilience, markets may further reassess the path for interest rates.
What today’s ASX session may hinge on
Today’s local market tone is likely to depend on three main themes.
First, technology sentiment may remain fragile after the overnight semiconductor selloff.
Second, commodity-linked sectors could respond to weaker oil and copper prices.
Third, gold producers may attract attention if bullion strength offsets broader risk-off sentiment.
The ASX heads into Thursday’s session with a softer global lead as technology weakness, higher bond yields and mixed commodity moves weigh on sentiment. While the broader market may open lower, company-specific updates from Northern Star, Iluka, Lendlease, Kelsian and Perpetual could create pockets of activity. The key question for the day is whether global technology weakness spreads further across local growth names or remains contained to semiconductor-linked sentiment.
