US equities closed higher, with the Nasdaq Composite and S&P 500 reaching new peaks, primarily driven by Apple’s robust performance. The iPhone maker rallied 3.3 per cent after better-than-expected quarterly results and an optimistic outlook, drawing significant investor interest. This surge helped the Nasdaq advance 0.9 per cent and the S&P 500 gain 0.3 per cent, though the Dow Jones Industrial Average dipped 0.3 per cent. Locally, Australian software company Atlassian, which develops products for software developers, project managers, and content management, surged 29.6 per cent following stunning quarterly results. Oppenheimer affirmed its ‘outperform’ rating on the stock.
The broader tech sector demonstrated strength, with five of the ‘magnificent seven’ rising, led by Apple, while Nvidia and Meta Platforms slipped. Google parent Alphabet continued to narrow the market capitalisation gap with Nvidia, ending the week at $US4.66 trillion against Nvidia’s $US4.82 trillion. The S&P 500 earnings season is delivering impressive outcomes, with companies reporting results 20.7 per cent above estimates, higher than the five-year average. Analysts project sustained profit growth through 2026, with Wolfe Research strategist Chris Senyek noting that the AI thematic remains the dominant market theme, offering secular growth.
Closer to home, ASX 200 futures indicate a minor dip of 0.3 per cent as attention shifts to a busy week. Investors anticipate the Reserve Bank of Australia’s interest rate decision on Tuesday, with NAB economists forecasting a 25 basis point hike, lifting the cash rate to 4.35 per cent. The RBA’s decision will coincide with an updated Statement on Monetary Policy. The local reporting season will accelerate, featuring results from major players such as NAB, Westpac, Macquarie Group, and Rio Tinto’s annual general meeting. Overseas, significant US labour data, including April non-farm payrolls, and quarterly results from companies like Disney and Uber, are also on the agenda.
