**ASX Set for Gains as Bond Yields Stabilize and Wall Street Gets a Boost from Tech Rally**
*Adapted and expanded from an article originally written by James Thomson for The Australian Financial Review.*
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Global market sentiment saw a notable positive shift as investors responded to encouraging signs from both equity and bond markets. Particularly, the Australian Securities Exchange (ASX) is poised to open higher following a strong performance on Wall Street, led by impressive gains in technology shares. The recent rally, catalyzed in part by Alphabet’s earnings results, provided a significant tailwind for risk assets, while a rebound in bond prices offered additional support.
This comprehensive analysis will review the drivers of these moves, the impact on various asset classes, broader implications for investors, and expert commentary on the outlook.
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## Wall Street’s Tech Surge Powers Global Shares
On the latest trading day, major US stock indices ended higher, fueled by the outperformance of technology giants. Alphabet—Google’s parent company—delivered quarterly earnings and revenue results that surpassed analysts’ estimates, sending its shares sharply higher. This enthusiasm extended across the tech sector, with market participants increasingly optimistic about continued growth and resilience in earnings.
### Key Drivers
– **Alphabet Beats Expectations**
– Alphabet reported earnings per share and revenues notably above consensus forecasts.
– The company’s cloud division and advertising arm showed strong revenue growth, dispelling some investor concerns about a potential slowdown.
– Following the report, Alphabet’s stock surged, lifting the broader NASDAQ index.
– **Broader Technology Rally**
– Other large-cap tech companies, such as Microsoft and Apple, also experienced significant gains.
– The tech-heavy NASDAQ index posted some of its strongest gains in weeks.
– Market appetite for growth stocks increased, buoyed by expectations that artificial intelligence and digital transformation trends will sustain robust profit growth.
### Wall Street Performance
– **S&P 500 Index**: Closed up 1.2 percent.
– **Dow Jones Industrial Average**: Gained 0.9 percent.
– **NASDAQ Composite**: Led the day’s advance with a jump of 1.8 percent.
These gains provided a clear signal that risk appetite is recovering after a period of uncertainty dominated by inflation and interest rate worries.
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## Bond Markets Steady After Recent Volatility
Bond yields, which had surged amid expectations for further monetary tightening by major central banks, began to recede. The pull-back provided much-needed relief to equity markets, which had been unmoved by higher yields in recent weeks.
### Key Developments
– **US Treasury Yields Retreat**
– The benchmark 10-year US Treasury yield fell from a multi-year high.
– Investors initiated fresh buying of government debt, encouraged by signs that inflation may be cooling and that economic data is not worsening.
– **Australian Bond Performance**
– Australian bond yields mirrored developments in the US, with the local 10-year yield dipping, suggesting that fears of aggressive
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