US sharemarkets rose sharply on Thursday, with the S&P 500 and Nasdaq Composite closing at fresh record highs as strong earnings from key companies lifted sentiment. The S&P 500 gained 1.02% to 7,209.01, marking its first close above the 7,200 level, while the Nasdaq Composite advanced 0.89% to 24,892.31. The Dow Jones Industrial Average jumped 790.33 points, or 1.62%, to 49,652.14.
Gains were led by industrial and technology stocks, with Caterpillar rising nearly 10% after reporting better-than-expected results and upgrading its revenue outlook. Alphabet also surged 10% following a strong earnings report, providing support to the broader market.
In contrast, Meta and Microsoft declined after highlighting higher capital expenditure tied to artificial intelligence investment, with concerns emerging around the scale of ongoing spending.
Economic data showed the US economy expanded at an annualised rate of 2% in the first quarter, below expectations but higher than the prior quarter, pointing to moderate growth.
Oil prices declined after recent gains, with Brent crude falling 3.41% to US$114.01 a barrel and West Texas Intermediate crude dropping 1.69% to US$105.07.
Despite the pullback, energy markets remain sensitive to developments in the Strait of Hormuz, with supply concerns continuing to underpin volatility.
Bond yields eased, with the US 10-year yield falling 6 basis points to 4.37%, while market volatility also declined.
Australian Market Outlook
Australian shares are set to open higher, following strong gains on Wall Street and positive momentum from corporate earnings.
S&P/ASX 200 futures were up 127 points, or 1.5%, to 8,795.
Locally, ANZ, Coles Group and ResMed are set to report results.
On the data front, S&P Global will release Australian manufacturing PMI data at 9am, followed by first-quarter producer price index figures at 11.30am.
