US sharemarkets rose on Wednesday, extending the recovery that began late in the previous session as energy prices stabilised and economic data pointed to continued strength in the US economy. The Dow Jones Industrial Average climbed 238 points, or 0.49%, to 48,739.41. The S&P 500 advanced 0.78% to close at 6,869.50, while the Nasdaq Composite led the gains, rising 1.29% to 22,807.48.
Earlier volatility tied to the US-Israeli conflict with Iran eased as oil prices pulled back from recent highs. Brent crude finished flat and US crude edged up 0.13% after assurances from US officials that measures would be taken to maintain shipping through the Strait of Hormuz. The key oil transit route had briefly seen tanker traffic halt following threats from Iranian forces.
Chip stocks lead technology rebound
Technology stocks drove the market higher, particularly semiconductor names. Micron Technology and Advanced Micro Devices each jumped more than 5%, while Nvidia and Broadcom rose more than 1%. Broader strength across the sector helped push the Nasdaq higher after several sessions of volatility.
Investor sentiment was also supported by stronger-than-expected economic data. Private payrolls rose more than forecast in February, according to ADP, while the ISM services index recorded its strongest growth since mid-2022 with easing inflation pressures. The data reinforced the view that the US economy remains resilient despite recent geopolitical risks.
Australian market outlook
Australian shares are set to open higher, following the rebound on Wall Street and strength in technology stocks. ASX 200 futures were up 95 points, or 1.1%, to 8,953.
Locally, investors will focus on economic data due at 11.30am, including the January trade balance and monthly household spending figures.
