Live: ASX to rise, AI rally pushes Nasdaq to record high, oil falls below $US100

The Australian share market is expected to open higher on Monday as Wall Street's AI stocks surge, propelling the tech-focused Nasdaq index to a fresh record high. Oil prices witnessed a significant drop, slipping below $100 per barrel for the first time since early September, as investors remain optimistic about the prospect of a diplomatic resolution to the conflict between the US and Iran.

Wall Street's Nasdaq Composite index reached its highest closing level since June 2, buoyed by gains in companies specializing in artificial intelligence, such as Advanced Micro Devices. The S&P 500 index is close to its record peak, which it achieved on August 13. Despite recent warnings from leaders of AI corporations warning of potential risks, investors remain confident in the expanding spending on AI technology.

However, despite Wall Street's positive performance, investors are cautious about the Federal Reserve's interest rate outlook, with a 50% likelihood of another rate hike next month. The yield on the US 10-year Treasury bond has dropped below the crucial 5% level, following a decline in oil futures prices to their lowest level since September 9.

Oil prices fell by nearly 4% to a level of $99.86 per barrel, while West Texas Intermediate (WTI) crude futures experienced a 5% decrease to $95.43 per barrel. The recent drop in oil prices coincides with hopes for a diplomatic breakthrough in the US-Iran war, driven by the ongoing UN General Assembly meeting in New York. Despite tensions escalating between Washington and Tehran, US President Donald Trump expressed willingness to meet with Iranian President Masoud Pezeshkian, who is expected to attend the UN General Assembly.

Meanwhile, Iran has conveyed its demands to mediators for the resumption of negotiations, according to Iran's security chief, Mohsen Rezaei. Conflict persists in the Middle East, with Iran-backed Houthis launching attacks on Saudi Aramco infrastructure in the Red Sea, cutting off the Red Sea coast from the remaining territories under Saudi-backed forces. In response, Saudi Arabia has urged Iran to assist in curbing the Houthis' activities.