Is Market Sentiment Shifting? ASX Edges Higher as Meta and Microsoft Earnings Boost Global Tech Mood

Highlights

• ASX opened in the red but rebounded, tracking Wall Street volatility amid US economic contraction data

• Meta Platforms and Microsoft posted upbeat earnings, lifting global technology sentiment

• Information technology sector showed resilience on the ASX following gains in US tech stocks

The Australian share market witnessed intraday fluctuations as global sentiment swung in response to macroeconomic data and earnings results. The S&P/ASX 200 and the All Ordinaries both opened weaker but reversed course during the session, supported by advances in information technology stocks. This came after a turbulent trading day on Wall Street where broader economic figures revealed a contraction in the US economy.

Despite initial weakness, the market was buoyed by after-hours earnings from technology leaders Meta Platforms (META) and Microsoft Corporation (MSFT). The strong financial reports lifted investor sentiment, contributing to improved performance across technology indices globally, including the Nasdaq. The upbeat outlook from these tech majors provided a supportive backdrop for local tech shares, allowing the ASX technology sector to regain ground.

Microsoft and Meta Drive Sentiment Recovery
In extended trade, Microsoft Corporation (MSFT) and Meta Platforms (META) saw share price appreciation after delivering earnings results that exceeded market expectations. This led to a broader uplift in technology-related stocks, helping to reverse early declines on US indices. The Nasdaq displayed notable resilience as these companies provided reassurance about the stability of the tech sector amid broader economic concerns.

The impact of these results was also reflected on the ASX, where local tech players found support. Although not directly related to the earnings of MSFT and META, the positive sentiment trickled down, resulting in improved performance across several tech-focused listings.

Australian Tech Sector Shows Resilience
The technology sub-index on the S&P/ASX 200 turned positive during the session, following earlier losses. Despite the initial downturn triggered by weak cues from global markets, local technology shares saw renewed activity after the improved tone from US earnings reports. Companies such as WiseTech Global Ltd (ASX:WTC), Xero Ltd (ASX:XRO), and NextDC Ltd (ASX:NXT) recorded gains, mirroring the uptick in global technology peers.

This recovery underscored the correlation between US and Australian tech stocks, especially when heavyweight companies overseas deliver stronger-than-expected quarterly results. The sector’s rebound helped the broader ASX indices stabilize, though other sectors remained mixed throughout the day.

US Economic Data Weighs, But Markets Rebound
Economic data released from the US showed a contraction in overall output, raising broader concerns about global growth. However, the immediate impact on equities was moderated by the strong earnings results from major technology companies. This provided a counterbalance to otherwise weak economic figures.

While financials and materials on the ASX remained flat or lower during the session, the information technology sector was the standout performer, reversing earlier losses. This sectoral divergence highlighted the growing influence of global tech earnings on local market behavior.

Currency and Broader Market Moves
The Australian dollar remained steady during the session, with traders watching both domestic economic indicators and overseas developments. Broader market indices fluctuated before staging a modest recovery, with the S&P/ASX 200 and All Ordinaries both managing to erase early losses.

Gains in the tech sector proved instrumental in this reversal, underscoring the importance of global earnings in shaping sentiment across international markets, including the ASX.