ASX set to rise as Wall Street gets an AI boost

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By Damian Troise

December 22, 2025 — 5.26am

Stocks gained ground on Wall Street on Friday for a second straight day, wiping away losses from earlier in the week.

Technology stocks were once again the main force behind the market’s broader moves, especially companies with a focus on artificial intelligence. Both the S&P 500 and the Nasdaq closed out the week with gains, despite several stumbles early this week.

AI stocks closed the week strongly on Wall Street.

The S&P 500 rose 59.74 points, or 0.9 per cent, to 6,834.50. It notched a 0.1 per cent gain for the week. The Dow Jones Industrial Average rose 183.04 points, or 0.4 per cent, to 48,134.89.

The technology-heavy Nasdaq made the biggest move. It rose 301.26 points, or 1.3 per cent, to 23,307.62 and notched a 0.5 per cent gain for the week.

The Australian sharemarket is set to jump, with futures pointing to a rise of 41 points, or 0.5 per cent, at the open. The Australian dollar was trading at US66.12¢ at 5.18am AEDT.

Nvidia was the biggest force driving Wall Street higher, with a 3.9 per cent gain. Broadcom jumped 3.2 per cent.

The technology sector has been fueling Wall Street throughout the year as companies with outsized values like Nvidia exert more pressure on markets. But, those pricey stock values have come under more scrutiny from investors wondering whether they are justifiable.

Oracle rose 6.6 per cent on news that it, along with two other investors, had signed agreements to form a new TikTok US joint venture. Oracle, Silver Lake and MGX each get a 15 per cent share in the popular social video platform, ensuring that it can continue operating in the US

Company earnings and how companies are performing amid tariffs and inflation were a key focus for Wall Street.

Nike slumped 10.5 per cent, as the impact from tariffs overshadowed an otherwise strong quarterly profit report. Frozen potato maker Lamb Weston fell 25.9 per cent, despite also beating Wall Street’s profit and revenue forecasts.

Winnebago Industries jumped 8.4 per cent after turning in profits and revenue for its latest quarter that easily beat analysts’ estimates.

Homebuilders fell following a report showing that home sales slowed from a year earlier for the first time since May. KB Home fell 8.5 per cent.

A survey from the University of Michigan showed that consumer sentiment in December improved slightly from November, but is deeply diminished from a year ago.

“Despite some signs of improvement to close out the year, sentiment remains nearly 30 per cent below December 2024, as pocketbook issues continue to dominate consumer views of the economy,” wrote Surveys of Consumers Director, Joanne Hsu.

Consumer confidence has been weakening throughout the year as persistent inflation squeezes consumers. The job market is also slowing while retail sales weaken. Businesses and consumers are also worrying about the continued impact of a wide-ranging US-led trade war that has targeted key partners including China and Canada.

The latest inflation update on Thursday revealed a surprise cooling of prices in November. The Labor Department reported that its consumer price index rose 2.7 per cent. But economists quickly warned that those numbers were suspect because they’d been delayed and likely distorted by the 43-day federal shutdown.

“The wave of economic data did little to provide clarity for investors this week, keeping the market in the trading range it has been in since September,” said. Mark Hackett, chief market strategist at Nationwide, in a note to investors.

Inflation is still above the Federal Reserve’s 2 per cent target. The central bank cut its benchmark interest rate at its most recent meeting. It has been concerned about the slowing job market hurting the economy. But cutting interest rates could add more fuel to inflation, which could also stunt economic growth.

The Fed has maintained a cautious stance about interest rate policy heading into 2026 and Wall Street is mostly betting that it will hold steady on rates at its next meeting in January.

Treasury yields rose in the bond market. The yield on the 10-year Treasury rose to 4.15 per cent from 4.11 per cent late Thursday.

Japanese stocks rose after the Bank of Japan raised its benchmark interest rate to its highest level in 30 years. In Tokyo, the Nikkei 225 gained 1 per cent, leading the rise across Asia’s key markets. Markets in Europe also gained ground.