US sharemarkets finished mixed overnight as investors balanced another round of solid corporate earnings against profit-taking in technology stocks, while the Dow Jones Industrial Average extended its record run. The Dow rose 263.24 points, or 0.49%, to a fresh record close, marking its fifth consecutive day of gains. The S&P 500 eased 0.17%, ending its four-session winning streak, while the Nasdaq Composite fell 0.83% as weakness in major technology stocks weighed on sentiment.
Markets traded higher earlier in the session after renewed optimism around artificial intelligence lifted semiconductor shares. Nvidia gained more than 3% after Elon Musk said during SpaceX’s earnings call that the company would use Nvidia chips exclusively for its AI infrastructure. However, gains faded as investors took profits across the technology sector, with Alphabet falling 4% after announcing a series of AI leadership changes. Advanced Micro Devices also came under pressure, while SpaceX fell 13.6%.
Earnings continued to provide support for the broader market. Katherine Bordlemay, co-head of Americas client portfolio management at Goldman Sachs Asset Management, said earnings growth was becoming broader across the market, with double-digit growth now coming from almost every sector in the S&P 500. She added that improving margins and expanding order backlogs among major AI companies were helping reinforce confidence that heavy investment in artificial intelligence is delivering returns.
Oil prices remained on a softer trajectory as hopes for progress towards resolving the Iran war continued to improve market sentiment, easing concerns over potential supply disruptions. However, inflation remains firmly in focus. Federal Reserve Governor Lisa Cook said she is prepared to support another interest rate increase unless inflation continues to moderate, reinforcing expectations that policymakers remain vigilant despite signs of easing price pressures.
Australian Market Outlook
Australian shares are expected to open slightly lower after the S&P 500 paused its recent rally and technology stocks weakened overnight. S&P/ASX 200 futures are down 9 points, or 0.1%, to 9,143. Locally, investors will focus on earnings from AMP, ResMed and Block, which are due to report today. Their results are likely to influence sentiment across the financial, healthcare and technology sectors. Offshore, earnings season continues with results from Warner Bros. Discovery, Airbnb and Lyft expected later today, while investors will continue monitoring comments from Federal Reserve officials for further clues on the outlook for US interest rates
