US equities have pushed to fresh record highs, with investors continuing to look past geopolitical risks and instead focusing on growth, technology and expectations for easier monetary policy.
The S&P 500 rose 0.62% to close at a new record 6,944.82, while the Dow Jones Industrial Average surged almost 500 points, finishing above 49,000 for the first time at 49,462. The tech-heavy Nasdaq Composite added 0.65%, also ending near session highs.
Tech and AI drive momentum
Technology stocks again led the charge. Amazon jumped more than 3%, providing a strong lift across all three major indices. Artificial intelligence-linked names also stood out, with Micron Technology surging around 10% and Palantir Technologies climbing more than 3%.
Semiconductor stocks have started the year strongly, with Micron already up more than 20% year to date, following a blockbuster 2025 in which the stock rose more than 240%. Strategists say the current rally reflects renewed confidence that AI investment remains a powerful structural driver, rather than a short-term trade.
Energy steady as oil fears ease
Energy stocks, which jumped earlier in the week, were steadier overnight. Investors appear to be reassessing the implications of political change in Venezuela, with oil prices falling nearly 2% in New York as fears of supply disruption eased. Some traders are now pricing in the possibility that sanctioned barrels could return to the market over time, rather than expecting an immediate supply shock.
That calmer oil backdrop has helped keep broader equity sentiment constructive, avoiding the kind of inflation scare seen during past geopolitical crises.
Australia set to follow higher
Locally, Australian shares are set to open firmer. Futures point to the S&P/ASX 200 opening about 0.47% higher, tracking Wall Street’s gains.
Commodity markets are also in focus, with copper extending a powerful rally after breaking above US$13,000 a tonne for the first time, reflecting tight supply conditions and a risk-on tone.
Data watch ahead
Attention now turns to local economic data, with November CPI due later this morning, alongside monthly building approvals.
