Market Open: Solid rebound overnight on Wall Street but ASX looking soft

US markets staged a solid rebound on Wednesday, with technology stocks leading the recovery but the ASX is looking at a soft opening.

The S&P 500 added 1.3% to 7,619.38, the Nasdaq rose 1.6% to 25,466.19 and the Dow gained 0.5% to 52,486.49.

The rally followed a difficult run for technology shares, with stronger-than-expected results from cloud computing provider CoreWeave helping restore some confidence in AI-related spending. Semiconductor stocks also recovered, with Nvidia among the names moving higher.

But the backdrop is not entirely comfortable. Hotter-than-expected US inflation has strengthened expectations that the Federal Reserve may need to raise rates again in December. That leaves investors balancing renewed enthusiasm for AI against the prospect of tighter monetary policy.

The contrast between Wall Street and the local futures market is worth watching. Despite the US rebound, SPI futures were pointing to an opening decline of around 34 points, or 0.35%, for the ASX 200.

Technology could attract attention following the US recovery, but the bigger question is whether the improvement in sentiment can carry through to Australian stocks.

Investors will also be weighing the implications of higher interest-rate expectations. The latest US inflation reading has put the prospect of further tightening back on the table, potentially keeping pressure on rate-sensitive sectors, including property and consumer-facing businesses.

Xero is in focus with its half-year results due today. Investors will be looking for evidence that customer growth and revenue momentum remain on track, as well as any update to its outlook.

GrainCorp is also scheduled to release its FY26 results, while Aristocrat Leisure, Orica and Alkane Resources are among the other companies reporting.

The ABS is due to release September overseas arrivals and departures data, along with the latest Water Account figures.

The ASX 200 finished Wednesday at 9,153.20, gaining 0.27%, with 10 of the 11 sectors closing higher. Financials were the exception, while information technology and utilities led the gains.

That broad improvement will be tested at the open if futures weakness carries through. The banking sector also remains in focus following the latest housing finance figures, while company results are likely to drive individual stock moves.

Gulf Stream Energy (ASX: GSE) has finalised Zydeco-1 contingent resource estimates;

Talga Group’s (ASX: TLG) anode breakthrough powers five times battery lifespan;

Galan Lithium’s (ASX: GLN) Suttles pad production passes 1,200 BOEPD in flowback;

Yandal Resources (ASX:YRL) has further extended Arrakis gold mineralisation at depth; and

Carnarvon Energy (ASX: CVN) has added Pavo South-1 to firm 2027 drilling campaign.

Bitcoin has recovered above US$74,000 after slipping below that level earlier in the week. It was trading around US$74,467 at the latest snapshot, up approximately 1% over 24 hours.

The bounce offers some relief, but the broader trend remains weak: Bitcoin is still down around 7% over the past seven days. The recent pressure has coincided with a stronger US dollar, higher bond yields and growing expectations of another Fed rate rise.

For now, the recovery looks more like a pause in the sell-off than clear evidence that sentiment has turned.

That’s HotCopper’s Market Open, I’m Colin Sandell-Hay – happy trading.