Market Overview
US markets closed higher, buoyed by a robust rebound in technology and semiconductor stocks as renewed optimism for artificial intelligence (AI) investments took hold. This rally unfolded ahead of anticipated earnings from major tech firms and the Federal Reserve’s two-day policy meeting. Concurrently, global oil prices eased significantly amid reports of diplomatic efforts concerning the Middle East conflict. For investors entering the APAC session, attention now shifts to Australia’s forthcoming quarterly inflation data, a crucial indicator for the Reserve Bank of Australia’s (RBA) interest rate outlook.
Markets
The S&P 500 (^GSPC) concluded the session 0.60% higher at 7,722.60. Leading the gains, the Nasdaq Composite (^IXIC) advanced 1.18% to 26,477.81, primarily driven by technology and semiconductor shares. The Dow Jones Industrial Average (^DJI) posted a marginal gain of 0.03%, closing at 52,377.57, with its performance influenced by individual stock movements.
In commodities, Brent Crude (BZ=F) fell 5.16% to 109.83, while WTI Crude (CL=F) declined 1.49% to 100.24, both reflecting eased geopolitical concerns. Gold (GC=F) gained 0.84% to 4,072.20. The 10-Year US Treasury yield (^TNX) moved up slightly by 0.70 bp to 4.993%.
The Australian Dollar (AUDUSD=X) ended down 0.04% at 0.7027. Australian shares are poised for a slightly higher open, with S&P/ASX 200 futures up 0.1% to 8876 near 6am AEDT. The S&P/ASX 200 (^AXJO) closed its previous session up 0.46% at 8,850.10.
What Drove Markets
A renewed wave of optimism surrounding artificial intelligence (AI) investments propelled US technology and semiconductor stocks. This resurgence was notably spurred by Anthropic’s initial public offering (IPO) filing — which, despite highlighting revenue growth, also detailed enormous spending, a net loss of approximately $80.7 billion in H1 2026, a reported valuation around $1.5 trillion (down from earlier projections of $2 trillion), and over 90 pages of risk factors — and by a significant $63 billion financing deal for Broadcom’s technology related to Anthropic. Major chipmakers such as Advanced Micro Devices (AMD) and Micron Technology (MU) saw substantial gains, with the Philadelphia Semiconductor Index gaining more than 3% during the US session, according to AFR. Investors are now keenly awaiting upcoming earnings from “Magnificent Seven” AI giants like Alphabet (GOOGL), Amazon (AMZN), and Microsoft (MSFT), seeking “proof-of-returns” on their extensive AI infrastructure spending.
The Federal Reserve commenced its two-day policy meeting, a critical event for market participants. While the central bank is widely anticipated to hold interest rates steady, the market’s focus will be on any forward guidance from Chair Kevin Warsh regarding the potential for further rate hikes before year-end.
Global oil prices eased significantly due to ongoing diplomatic efforts in the Middle East. Reports of a quadrilateral meeting involving Iran, Pakistan, Saudi Arabia, and Türkiye, along with discussions between Iranian officials, contributed to alleviating immediate concerns about an escalation in regional conflicts involving the US and Iran.
For investors in Australia, the imminent release of quarterly inflation data is a critical determinant for the Reserve Bank of Australia’s (RBA) monetary policy. Traders are closely monitoring this data for clues on whether the RBA will be compelled to raise the cash rate to an 18-year high. The outcome of the Israeli election, with polls closing at 7am AEDT, is also weighing on investors’ minds due to its potential impact on the conflict with Iran.
Stocks to Watch
Shares of Broadcom (AVGO) climbed 4.00%, Advanced Micro Devices (AMD) surged 5.45%, and Micron Technology (MU) advanced 2.77% on the back of renewed AI investment optimism. Oracle (ORCL) also saw its stock advance 3.55% following news of an expanded partnership with OpenAI. Meanwhile, Alphabet (GOOGL) gained 1.19% and Amazon (AMZN) rose 1.61% ahead of their crucial earnings reports. Microsoft (MSFT) saw a slight dip of 0.24%.
In other corporate news, Boeing (BA) shares slumped 10.69% after reporting a larger-than-expected quarterly loss and cutting delivery targets, sending the stock to an 18-month low. This decline acted as a drag on the Dow. Meta Platforms (META) fell 1.64% after posting negative free cash flow for the first time since its 2012 IPO, a result of nearly $35 billion in capital expenditures largely for data center and AI-related infrastructure. The company also announced significant financing efforts to fund its AI ambitions.
Separately, delivery giant UPS reported better-than-expected third-quarter results and raised its full-year guidance for adjusted profit and revenue. Royal Caribbean also upped its full-year adjusted profit guidance and delivered 9% quarterly revenue growth.