ASX futures point lower as US tech rebound lifts S&P but leaves Dow in the red

Australian sharemarket futures signalled a weaker open, pointing to a fall of 28 points, or 0.3 per cent, as local investors reacted to mixed trading on Wall Street and swings in big technology stocks.

In New York the S&P 500 finished higher by 0.5 per cent, even though more stocks in the index fell than rose. The Nasdaq outperformed with a 1.0 per cent gain, while the Dow Jones Industrial Average slipped about 247 points, or 0.5 per cent.

A cluster of AI-linked chip and software names led the rebound on Wall Street. Nvidia climbed 3.2 per cent, Broadcom also rose 3.2 per cent, Advanced Micro Devices jumped 5.5 per cent, and Micron Technology gained 2.6 per cent as investors rotated back into semiconductor and AI infrastructure plays.

Apple bucked the tech rally, falling roughly 2 per cent. The iPhone maker reported stronger quarterly revenue and profit than analysts had forecast, but warned that rising memory-chip costs tied to demand for AI data centres will squeeze margins in the December quarter.

Not all earnings moved markets in the same direction. Palantir Technologies slid 2.1 per cent despite beating profit estimates, even as its commercial revenue surged 148 per cent year on year. On the upside, DuPont added 8.8 per cent, Celanese rose 4.7 per cent, and Revvity delivered one of the largest gains in the S&P 500, jumping 11.7 per cent after beating expectations.

Economic data and bond markets also played a role overnight. A stronger-than-expected reading on US job openings at the end of September helped push the yield on the US 10-year Treasury up to 4.96 per cent, from 4.91 per cent late on Monday.

Commodities and regional markets were volatile. Brent crude briefly traded above $107 a barrel before dipping and was last down 1.4 per cent at $103.27. European indexes closed lower, Asian markets were mixed, and South Korea’s Kospi plunged 3.6 per cent, led by steep falls at Samsung Electronics and SK Hynix.

At home, the ASX had gained 0.3 per cent on Tuesday after the Reserve Bank delivered its fifth rate increase of the year, lifting the cash rate to an 18-year high. The Australian dollar was trading around US69.74 cents, reflecting the interplay between domestic rate moves and offshore risk appetite.

Political developments in the US also added a layer of uncertainty. Market commentators noted midterm elections can unsettle sentiment ahead of results, although historical patterns cited by analysts show the S&P 500 has posted positive returns in the six months after every midterm since 1970. Some strategists flagged the possibility of tighter rules on AI under a Congress controlled by one party, even as presidential veto power could limit major changes.

The immediate outlook for Australian investors is likely to hinge on ongoing earnings from tech and chip suppliers, further moves in US Treasury yields, and any fresh signals from the Reserve Bank on monetary policy. Those forces will determine whether the ASX follows the US upward push by AI winners or slides with broader risk-off moves driven by yields and geopolitics.