US sharemarkets finished mixed overnight as falling oil prices and another round of strong corporate earnings lifted broader markets, while semiconductor stocks remained under pressure ahead of key technology earnings and the Federal Reserve’s policy decision.
The Dow Jones Industrial Average rose 537.24 points, or 1.03%, to 52,747.32, recording its third straight gain. The S&P 500 added 0.21% to 7,428.78, while the Nasdaq Composite slipped 0.22% to 24,876.91 as weakness across chipmakers weighed on technology stocks.
Investors continued rotating out of semiconductor stocks into more defensive and cyclical sectors. The VanEck Semiconductor ETF fell more than 3%, extending its losing streak to a fourth session, while Micron Technology and Advanced Micro Devices each dropped more than 8%. In contrast, healthcare and financial stocks climbed to record highs, reflecting a broad shift in market leadership.
Corporate earnings continued to support sentiment. Sherwin-Williams jumped 8% after reporting stronger-than-expected quarterly results, while Coca-Cola gained 5% after beating earnings forecasts and raising its full-year guidance.
Oil prices fell sharply after reports Iran had held discussions with Saudi Arabia and Oman, raising hopes of easing tensions in the Middle East. Brent crude fell 4.8% to US$84.09 a barrel, while West Texas Intermediate declined 4% to US$79.26.
Australian Market Outlook
Australian shares are expected to open higher after gains across Wall Street and easing oil prices improved market sentiment.
S&P/ASX 200 futures are up 74 points, or 0.8%, to 8,980.
Locally, investors will focus on the June quarter CPI report, due at 11:30am AEST, which is expected to play a key role in shaping expectations for the Reserve Bank’s next interest rate decision. Rio Tinto headlines a busy day of earnings, alongside Atlas Arteria, Mineral Resources, Northern Star and Nickel Industries.
