The Australian sharemarket has risen, bolstered by an artificial intelligence-powered rally on Wall Street, a drop in the oil price, and easing bond yields.
The S&P/ASX 200 Index rose 13.8 points, or 0.2 per cent, to 8745.70 as of 2.03pm AEST on Tuesday, with seven out of the 11 sectors in the green, led by technology.
This came after the S&P 500 rose 1.5 per cent overnight – reaching within 0.4 per cent of its record set last month – as early signs of success for Facebook owner Meta’s AI agent lit a fire under the chip-making industry.
A slump in the price of Brent crude oil, which briefly dipped below $US100 a barrel on hopes for diplomatic efforts to end the war in Iran, added to market optimism, along with the US 10-year yield easing to 4.95 per cent.
“The market finally got the combination it had been waiting for,” said SPI Asset Management’s Stephen Innes. “Oil backed away from the danger zone, the US 10-year yield slipped below 5 per cent, and the AI complex grabbed the baton and ran.”
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