Australian investors are poised for a positive week following a robust close on Wall Street, where the S&P 500 surged to a record high. The benchmark index rose 0.6 per cent to 7757.64, marking a new closing peak. This uplift was driven by July’s unexpected US payrolls report, which indicated employers cut jobs, providing the Federal Reserve with room to maintain current interest rates for longer. Scotiabank’s Derek Holt noted the US job market is “clearly grinding to a halt.” For the week, the S&P 500 recorded a 3.6 per cent gain, adding over $US2.5 trillion in market capitalisation, while the Nasdaq Composite climbed 5.2 per cent and the Dow Jones advanced 3 per cent.
This softening labour market has influenced expectations for the Fed, with money markets now projecting a rate hike no sooner than December 2026. Expectations for a Fed hike at its next meeting notably dropped, according to CME FedWatch. Attention now shifts to Wednesday’s release of July US CPI data, a crucial reality check on price pressures, with RBC Capital Markets forecasting a 0.2 per cent month-over-month rise in core CPI. Amidst this backdrop, software giant Atlassian saw its US shares jump an impressive 35.3 per cent to $US149.07 after its quarterly results far exceeded expectations. Atlassian is an Australian-founded company providing collaboration and workflow software tools for teams. Both Bank of America and Oppenheimer upgraded Atlassian with lifted price targets, citing its data value and AI integration potential.
Locally, ASX 200 futures point higher ahead of Tuesday’s Reserve Bank of Australia policy meeting, where the cash rate is widely expected to be held unchanged at 4.35 per cent. Furthermore, Sunrise Energy Metals could experience movement after securing a $US400 million Pentagon loan for its NSW scandium project. Upcoming local economic data includes NAB’s July business conditions and confidence data on Tuesday, with major banks also set to release quarterly updates throughout the week.
