US equities edged higher on Tuesday as investors returned from the Presidents’ Day holiday, with financial stocks helping offset continued weakness in software names.
The S&P 500 rose 0.1 per cent to close at 6,843.22. The Nasdaq Composite added 0.14 per cent, while the Dow Jones Industrial Average climbed 32 points to finish at 49,533.19.
The advance came after a volatile period for markets, with major indices logging multiple losing weeks amid concerns over artificial intelligence disruption. Last week, the S&P 500 and Dow each fell more than 1 per cent, while the Nasdaq lost more than 2 per cent, marking its fifth straight weekly decline.
Financials outperform as software remains under pressure
On Tuesday, investors rotated into financial stocks, with Citigroup up 2.6 per cent and JPMorgan gaining more than 1 per cent.
However, software stocks continued to drag. ServiceNow fell further, extending its 2026 decline to around 31 per cent. Autodesk and Palo Alto Networks each lost more than 2 per cent, while Salesforce and Oracle dropped nearly 3 per cent and 4 per cent respectively. The iShares Expanded Tech-Software ETF slid more than 2 per cent, leaving it down 23 per cent for the year.
The sector has been hit by fears that artificial intelligence tools could replace industry-specific software providers, prompting investors to reassess valuations and business models.
Those concerns have largely overshadowed softer-than-expected inflation data released last week, with markets now awaiting further signals. Federal Reserve meeting minutes are due Wednesday, followed by the personal consumption expenditures price index on Friday.
ASX poised to open higher
Australian shares are set to open higher on Wednesday, with ASX 200 futures pointing up 43 points to around 8,944. Investors will be focused on a busy local earnings calendar, including results from Dexus, Magellan Financial, Santos, Suncorp, National Australia Bank and TechnologyOne.
On the economic front, Australia’s fourth-quarter wage price index is scheduled for release at 11.30am AEDT. In New Zealand, the central bank will deliver its latest policy decision at midday.
Overseas, inflation data from the UK and France are due, while US releases later in the week include durable goods orders, housing starts and industrial production.
