The Australian sharemarket is heading for a weaker start on Friday, with ASX 200 SPI futures sliding to around 33 points, or 0.35%, lower after Wall Street suffered its steepest sell-off since April 2025.

The overnight rout wiped out the previous session’s post-election rally, as investors rushed to exit technology and artificial intelligence stocks amid growing concerns about the scale, cost and returns of the global AI infrastructure boom.

The S&P 500 fell 4.36% to 7,353.73, while the Nasdaq plunged 5.52% to 24,315, leaving it almost 12% below its record high and firmly in correction territory. The Dow Jones shed 1,833 points, or 3.44%, to 51,523.

Chipmakers bore the brunt of the selling, with Nvidia falling 9.3% and AMD plunging 17.3%. Wall Street’s fear gauge, the VIX, jumped to 28.09, its highest level in eight months.

The key question for local investors is whether Wall Street’s technology sell-off spills into the ASX, particularly after Thursday’s 2.61% rally was led by technology stocks.

Concerns about the economics of AI investment, energy-intensive data centres and the returns expected from massive infrastructure spending have put pressure on US technology valuations.

However, Australia’s data-centre sector has a different story unfolding, with major global players showing continued interest in local infrastructure.

Thursday’s rally was broad-based, with eight of the ASX’s 11 sectors finishing higher. Information Technology led the gains, surging 10.09%, followed by Materials (+7.55%), while Health Care (+3.64%) and Real Estate (+3.35%) also posted solid advances. Energy was the weakest sector, falling 4.76%, while Utilities (-1.51%) and Financials (-0.29%) were the only other sectors to close lower.

The key question for Friday is whether that strong local momentum can withstand Wall Street’s sharp overnight sell-off, particularly given Thursday’s strong performance from technology stocks.

NEXTDC (ASX: NXT) will remain firmly in focus after Goodman Group and US-based Digital Realty moved to secure a stake of up to 9.9% in the Australian data-centre operator through a jointly owned investment vehicle.

The company’s board described the move as opportunistic, noting that the investors had stated they had no current intention of making a takeover bid, while reserving their rights.

The development comes at an interesting time for the sector. While Wall Street investors are questioning the economics of AI infrastructure, two major global players are prepared to pay a substantial premium to gain exposure to an Australian data-centre operator.

Elsewhere, retail stocks may attract attention following David Jones’ entry into voluntary administration, with investors assessing the potential implications for competitors including Myer.

Macquarie Group (ASX: MQG) releases its half-year results, providing an important update for the financial sector.

Coles (ASX: COL), Qantas (ASX: QAN) and Nine Entertainment (ASX: NEC) also hold their annual general meetings.

Vita Resources (ASX; VTA) has advanced planning for the Ice project 2027 exploration program;

Metal Hawk (ASX: MHK) has kicked-off diamond drilling at Leinster South;

Rent.com.Au (ASX: RNT) has launched new product Help Renters Save;

Codrus Minerals (ASX: CDR) is set to start spinning the bit in initial drill program at Copperhole Creek; and

Critical Resources (ASX: CRR) has commenced first fieldwork at Vermillion Bay lithium project.

Digital assets came under renewed pressure alongside the overnight equity sell-off, with Bitcoin falling 5.57% to US$75,937 and Ether dropping 7.70% to US$2,235.63.

The weakness was widespread across major cryptocurrencies, with Solana down 5.61%, XRP losing 6.06% and Litecoin falling 7.11%. Uniswap was among the hardest hit, shedding 10.38%.

The declines extend a broader monthly downturn, with Bitcoin now down 11.24% over the past month and Ether losing 17.16%, highlighting the pressure on speculative assets as investors retreat from risk.

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

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