US sharemarkets finished slightly lower overnight as rising oil prices and growing expectations of higher interest rates offset optimism ahead of another busy round of corporate earnings.
The S&P 500 slipped 0.14% to 7,498.96, while the Nasdaq Composite fell 0.57% to 25,690.90. The Dow Jones Industrial Average eased 6.06 points to 52,218.58.
Oil prices continued to climb after the US carried out an 11th consecutive round of strikes against Iran. Brent crude rose 3.4% to settle at US$94.07 a barrel after briefly trading above US$95, while West Texas Intermediate gained 3% to US$86.83. The move fuelled concerns that higher energy costs could keep inflation elevated and delay interest rate cuts, with markets now assigning a roughly one-in-three chance of a Federal Reserve rate hike this month.
Investors also looked ahead to a key day of earnings, with Alphabet, Tesla, IBM, ServiceNow and Texas Instruments all reporting after the closing bell. Markets remain focused on whether demand for artificial intelligence infrastructure can continue to justify elevated technology valuations.
Among individual stocks, Super Micro Computer surged almost 20% after forecasting stronger-than-expected margins and revealing more than US$60 billion in new orders for the quarter. AT&T gained 3.5% after beating earnings expectations, while GE Vernova fell more than 8% after disappointing quarterly results.
Australian Market Outlook
Australian shares are expected to open higher despite the softer finish on Wall Street, supported by gains in semiconductor stocks and strong futures pricing.
S&P/ASX 200 futures are up 72 points, or 0.8%, to 8,839.
Locally, investors will focus on Australia’s June labour force report, due at 11:30am AEST, while overseas attention will turn to the European Central Bank’s latest policy decision, where interest rates are widely expected to remain unchanged.
