Live: Wall Street hits new record highs but ASX likely to open flat

Fueled by optimism around artificial intelligence profits, Wall Street's tech stocks have surged, propelling the S&P 500 and Nasdaq to new all-time highs. In the previous three days, the Australian share market had been steadily climbing, setting up for a potentially flat start to trading.

To prepare for the ASX opening, finance expert Daniel Ziffer's report can provide valuable insights. Ziffer draws parallels between the recent AI investment boom and past market surges like the railroad and highway expansions, as well as the aftermath of the COVID-19 pandemic and the global financial crisis. The Reserve Bank's primary objective is to maintain stable consumer prices, rather than lowering them, and it often gets misunderstood due to the misleading presentation of inflation data by the Australian Bureau of Statistics.

A viral social media video highlights a common confusion about inflation and how the RBA (Reserve Bank of Australia) aims to keep inflation rates from dropping further by allowing them to rise at a slower pace. To address this widespread misunderstanding, check out this informative column by my colleague Gareth Hutchens, which clarifies the concept of deflation in simple terms.

Despite hitting fresh record highs overnight, boosted by AI enthusiasm, the Australian share market is anticipated to maintain a relatively subdued start to its trading day. The ASX futures are currently flat, indicating minimal anticipated movement up or down when local trading resumes. The Australian dollar has experienced a slight increase, reaching 69.8 US cents. Meanwhile, oil markets saw Brent crude futures rise by 0.7% to $US101.06 per barrel, a decrease from recent weeks.

The easing of supply concerns, following the Group of Seven (G7) nations' agreement to release emergency diesel and crude oil reserves, contributed to this positive trend. As a result, US government bond yields, or borrowing costs, have slightly declined, alleviating worries about high inflation. This relief has helped lift the benchmark S&P 500 to its highest level ever, while the tech-focused Nasdaq Composite reached a new record high for the third consecutive day.

When oil prices stabilize or decrease, it leads to lower yields due to reduced anxiety about energy-driven inflation, subsequently propelling stock prices. At the close of the trading session, the S&P 500 gained 0.6% to 7,820 points, the Nasdaq Composite rose 0.5% to 27,605 points, and the Dow Jones Industrial Average climbed 0.5% to 51,532 points.

Among the top-performing stocks, Marvell Technology experienced a 5.8% increase after announcing an upward revision of its 2028 revenue forecast due to robust demand for its data center chips. Similarly, chipmaker AMD gained 2.8% following CEO Lisa Su's announcement of plans to significantly increase chip supply in the current financial year to meet the surging demand for AI-based chips. As the market opens, sip on your morning coffee or tea and look forward to the latest updates!