Global Optimism Boosts ASX200: Tech Rally and Softer Inflation Set Positive Tone

May 14, 2025 10:45 AM AEST | By Team Kalkine Media

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Global Optimism Boosts ASX200: Tech Rally and Softer Inflation Set Positive Tone — Image source: shutterstock

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Highlights

ASX set to gain as Wall Street rallies on soft US inflation

Major movements seen across ASX200, tech, and energy sectors

Dividend news and corporate updates from ASX-listed firms

Australian shares are eyeing a strong start today, with the ASX200 continuing its upward momentum, supported by an overnight tech-led surge on Wall Street and easing US inflation data. At 8:30 am AEST, the index was tracking a rise of 18 points or 0.21%, building on Tuesday’s gains as confidence flows back into global equities.

A softer-than-expected US core inflation figure of 0.2% in April helped lift sentiment, suggesting less urgency for aggressive rate moves from the Federal Reserve. This provided a major lift to technology and AI-focused companies in the US, including chipmakers such as Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD), both of which rallied on the back of a semiconductor deal with Saudi Arabia.

The S&P 500 rose 0.72%, now trading just 4% below its all-time high, while the Nasdaq surged 1.61%. Although the Dow Jones Industrial Average dipped 0.64% due to weakness in UnitedHealth Group (NYSE:UNH), broader sentiment remained buoyant.

Energy stocks also gained as oil prices surged overnight. Brent crude climbed 2.6% to US$66.55 a barrel, and WTI crude jumped 2.78% to US$63.67. The S&P 500 Energy Index rose 1.3%, reflecting renewed investor interest in cyclical and growth-linked sectors.

Locally, attention turns to today’s Wage Price Index, with a 0.8% quarterly rise expected. A print in line with forecasts would keep the Reserve Bank of Australia cautious ahead of its May 20 meeting.

On the corporate front, Commonwealth Bank (ASX:CBA) delivered a stable third-quarter result, while Aristocrat Leisure (ASX:ALL) fell short of first-half profit estimates. Webjet (ASX:WEB) is in focus following an unsolicited takeover interest from BGH Capital, and Insignia Financial (ASX:IFL) is back in the news as Bain Capital exits its bid citing market uncertainty.

Meanwhile, Woolworths (ASX:WOW) and Coles (ASX:COL) are under scrutiny after notable investor rotation away from defensive sectors. Dividend-related moves are also on the radar, with Washington H. Soul Pattinson (ASX:SOL) and Red Hill Minerals (ASX:RHI) distributing payouts, a point of interest for those exploring potential ASX dividend stocks.

Among small caps, activity remains strong. Anteris Technologies (ASX:AVR) updated investors on its heart valve trial and highlighted its addition to the FTSE Russell 2000 Index. Patronus Resources (ASX:PR1), Lindian Resources (ASX:LIN), and Leeuwin Metals (ASX:LM1) also posted promising drilling and development updates.

With global sentiment buoyed and rotation underway from defensives to growth names, the broader ASX200 looks set to maintain its upward trajectory.

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