Markets Overview

  • ASX SPI 200 futures up 0.6% to 9,138.00
  • S&P 500 up 0.8% to 6,948.26
  • Dow Average up 0.6% to 49,481.64
  • Aussie up 0.9% to 0.7123 per US$
  • US 10-year yield rose 1.8bps to 4.0480%
  • Australia 3-year bond yield rose 3.5 bps to 4.28%
  • Australia 10-year bond yield rose 2.5 bps to 4.72%
  • Gold spot up 1.2% to $5,206.04
  • Brent futures up 0.5% to $71.15/bbl

Economic Events

  • 10:30: (AU) Australia to Sell A$1 Billion 84-Day Bills on Feb. 26
  • 10:30: (AU) Australia to Sell A$1 Billion 119-Day Bills on Feb. 26
  • 10:30: (AU) Australia to Sell A$1 Billion 161-Day Bills on Feb. 26
  • 11:00: (AU) Australia to Sell A$150 Million 2.5% 2030 Linkers on Feb. 26
  • 11:30: (AU) 4Q Private Capital Expenditure, est. 0%, prior 6.4%
  • 11:30: (AU) SURVEY: Private Capital Expenditure 2025-26 A$197.5b

Australia’s central bank Governor Michele Bullock said judging the economy is “a little bit more difficult” now than in previous periods when it was raising interest rates. Companies including Qantas and Lynas Rare Earths are set to report financial results.

Stocks climbed in late hours on speculation that Nvidia Corp.’s strong outlook will help reignite confidence in the artificial-intelligence trade that has powered the bull market.

A $700 billion ETF tracking the S&P 500 rose after the close of regular trading. The giant chipmaker that’s seen as a barometer for the revolutionary technology said fiscal first-quarter sales will be about $78 billion, beating the average estimate of $72.8 billion. Its shares gained about 1.5%.

“Once again, Nvidia came out and really stepped up to the plate with extremely impressive numbers across the board,” said Ryan Detrick at Carson Group. “This is a nice cherry on top to an extremely impressive overall earnings season for Corporate America.”

While there are “some legit worries out there”, new highs in earnings and profit margins continue to justify this bull market, Detrick noted.

After powering the market higher for much of the past few years, Nvidia has languished in recent months as investors question the massive AI spending. Traders have also been fleeing sectors seen as potentially under threat from disruption.

Investors have been so sensitive that a report from a little known firm called Citrini Research outlining the potential AI risks to various industries — using hypothetical scenarios set in the future — jolted markets earlier this week.

In regular hours, equities notched their second straight day of gains, with tech shares leading the charge. Bitcoin hovered near $69,000. A rally in bonds stalled.

Wolfe Research conducted a poll that suggests most investors bet the AI “wrecking ball” that’s roiled markets is largely “overblown,” said Chris Senyek. However, participants viewed the “broadening out” trade as alive.

Recent price action tied to AI disruption risk presents opportunities in well-positioned incumbents and AI adopters with pricing power, according to Morgan Stanley strategists including Andrew Pauker.

The strategists also noted that an analysis of over 10,000 earnings and conference transcripts shows a steady increase in the share of companies seeing quantifiable benefits from AI adoption.

Meantime, President Donald Trump is convening tech executives from firms including Amazon.com Inc., Meta Platforms Inc., Microsoft Corp. and Alphabet Inc. at the White House next week to sign pledges committing their companies to foot the electricity bill for energy-hungry data centers.