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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a day to forget. The benchmark index fell 2% to 8,708.8 points.
Will the market be able to bounce back from this on Monday? Here are five things to watch:
ASX 200 expected to bounce back
The Australian share market looks set for a great start to the week following a strong finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 102 points or 1.2% higher. In the United States, the Dow Jones was up 2.5%, the S&P 500 rose 2%, and the Nasdaq stormed 2.2% higher.
Oil prices rise
It could be a decent start to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.4% to US$63.55 a barrel and the Brent crude oil price was up 0.75% to US$68.05 a barrel. Oil prices bounced around last week amid increased uncertainty between the US and Iran.
ASX 200 tech stocks on watch
It could be a much better session for ASX 200 tech stocks like Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC). After being sold off last week on concerns that artificial intelligence could disrupt software providers, WiseTech and Xero look set to rebound on Monday after their peers on Wall Street finished the week with a bang. It seems that some investors felt the selling was overdone.
Gold price jumps
ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price jumped on Friday night. According to CNBC, the gold futures price was up 1.85% to US$4,979.8 an ounce. Traders were buying gold in response to a softer US dollar and US-Iran tensions.
Buy Life360 shares
Bell Potter is urging investors to buy Life360 Inc (ASX: 360) shares after they were caught up in the tech selloff. The broker points out that “Life360 is an app rather than software company so faces little risk of AI displacement given the ecosystem it has developed over >15 years.” This morning, the broker has retained its buy rating on the company’s shares with a trimmed price target of $41.50. It adds: “Life360 is now trading on 2026 and 2027 EV/Adjusted EBITDA multiples of c.31x and c.21x which looks value for forecast growth of c.45% in both periods.”