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By Staff writers
January 7, 2026 — 8.39am
The Australian sharemarket is headed for a stronger morning after US stocks climbed for a third session overnight, taking the S&P 500 and the Dow Jones to fresh record highs.
ASX futures were up 41 points, or 0.5 per cent, to 8701, suggesting gains for the market when trading kicks off. The S&P/ASX 200 fell 0.5 per cent on Tuesday, despite a rally from BlueScope Steel after the steelmaker confirmed it had received a $13 billion takeover offer, as investors shifted out of the big four banks. The Australian dollar was up 0.4 per cent at US67.40¢ as of 7.53am AEDT.
Investors will be looking to the latest inflation figures at 11.30am AEDT for clues as to where interest rates are headed next. Economists predict consumer prices rose 3.7 per cent in November, a slight slowing from the 3.8 per cent inflation rate in October, according to Trading Economics. A higher reading would fuel speculation the Reserve Bank could raise rates as early as next month.
The US market has hit fresh alltime highs overnight.Credit: Bloomberg
On Wall Street overnight, US stocks continued their gains in the first full trading week of the year, led by advances in materials, industrials and financials as a market rotation into laggards gathered pace and catapulted the market toward a fresh all-time high.
The S&P 500 Index climbed 0.6 per cent to a fresh record. The Nasdaq 100 Index gained 0.7 per cent, while the old-economy Dow Jones Industrial Average jumped 1 per cent, closing above 49,000 milestone for the first time.
“If there is a singular theme, it is rotation,” said Michael O’Rourke, chief market strategist at Jonestrading Institutional Services. “Overall, people want to be invested in this market, but they are looking to other industry groups that represent relative value in comparison to last year’s leaders and highfliers.”
However, big tech companies were still making some of the most notable moves. The gains mirrored much of the action from 2025, when the tech giants often drove the market to a series of records.
Amazon, which has reach into both retail and technology, surged 3.4 per cent. It is one of the most valuable companies in the world and its outsized stock valuation helped counter losses elsewhere in the market, including a 1.8 per cent loss from Apple.
Micron Technology rallied 10 cent, also helping to lift the market.
Nvidia, which is often the biggest force behind the market’s direction, wavered throughout the day and closed down 0.5 per cent.
Digital storage device maker Sandisk surged 27.6 per cent for the US market’s biggest gain. The stock’s value has jumped more than 800 per cent since spinning off from Western Digital last February. The gains have been driven by artificial intelligence and the resulting demand for data-storage hardware.
Technology companies, especially those focused on artificial intelligence, are being closely watched this week during the industry’s annual CES trade show in Las Vegas.
AI advances helped propel the broader market to a series of records in 2025. Investors will be watching companies for any updates that could shed more light on the big corporate investments in AI technology.
The price of benchmark US crude oil fell 1.4 per cent, pulling back from sharp gains a day prior when the market reacted to US forces capturing Venezuelan President Nicolás Maduro in a weekend raid.
Treasury yields rose in the bond market. The yield on the 10-year Treasury climbed to 4.18 per cent from 4.15 per cent late on Monday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, rose to 3.48 per cent from 3.45 per cent late on Monday.
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Gold prices rose 1 per cent and silver prices rose 5.7 per cent. Such assets are often considered safe havens in times of geopolitical turmoil. The metals have notched record prices over the last year amid lingering economic concerns brought on by conflicts and trade wars.
Markets in Europe and Asia gained ground.
Outside of company announcements, Wall Street is preparing for several updates on the US labour market this week, along with reports on the services sector and consumer sentiment. They will help paint a clearer picture of how vital parts of the world’s largest economy closed out 2025 and the direction they could take in 2026. The reports will be watched by the Federal Reserve as it determines interest rate policy.
The central bank’s biggest focus will be on reports on the US job market over the coming days, which include updates for job openings and overall employment. The Fed has been weighing a slowing job market against risks for rising inflation as it decides whether to cut interest rates. It cut its benchmark rate three times late in 2025, but inflation has remained above its 2 per cent target and that has made the Fed more cautious.
Wall Street expects the Fed to hold interest rates steady at its January meeting.
with AP and Bloomberg
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