ASX Hits Record High as Wall Street Gains

The Australian share market opened strongly on Monday, with the S&P/ASX 200 reaching a new record high following gains on Wall Street.

By 10:41 AEST, the benchmark index climbed 1 per cent to 9,054.5 points, recovering from a 0.6 per cent decline at the close of last week. Investor optimism was boosted by comments from US Federal Reserve Chair Jerome Powell, who suggested that interest rates could be reduced in the near future.

Powell’s remarks lifted sentiment in New York, where major indices rose sharply. That momentum carried over to Australian markets, supporting early gains in key sectors such as mining and banking. Resource stocks recorded strong performances, while the four major banks also reported solid gains during the morning session.

In contrast, retailers experienced selling pressure ahead of corporate earnings results scheduled later this week. Analysts have noted that concerns over consumer spending and inflation are contributing to cautious trading in the sector.

The ASX’s record performance underscores the influence of US monetary policy on Australian markets. A softer stance from the Federal Reserve is generally viewed as supportive for equities, reducing borrowing costs and encouraging investment.

Traders and market watchers will monitor both domestic earnings reports and upcoming US economic data to assess whether the current rally can be maintained.

This morning’s market activity highlights the interconnectedness of global markets and the sensitivity of Australian investors to developments in the United States.

Disclaimer: This report is for general information only and does not constitute financial advice.