Australian shares are set to open higher, after tech stocks pushed U.S. indexes into the green.

ASX futures were up 0.6% or 47 points as of 8:00am on Monday, suggesting a higher open.

In the US, technology stocks helped push the S&P 500 higher Friday, capping off a rocky week in markets.

The S&P 500 gained 0.7%, while the Nasdaq climbed 1.1% to a new record. The Dow added less than 0.1%, or about 4 points.

In commodity markets, Brent crude oil was up 0.9% to US$82.12 a barrel, while gold was up 0.2% at US$2,333.83.

In local bond markets, the yield on Australian 2 Year government bonds was up at 4.04% while the 10 Year yield was also up at 4.31%. US Treasury notes were mixed, with the 2 Year yield up at 4.95% and the 10 Year yield down at 4.46%.

The Australian dollar was 66.24 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was down at 99.52.


Chinese shares ended lower, dragged by property and software technology stocks. Investors are looking for new catalysts after Beijing announced major property policy changes last week. Among major stocks, China Vanke was 6.0% lower, Poly Developments & Holdings shed 2.7% and Beijing Kingsoft Office Software dropped 3.0%. Gainers included Midea Group, which was 1.3% higher, and Jinko Solar, which added 1.65%. The benchmark Shanghai Composite Index was down 0.9% at 3088.87, the Shenzhen Composite Index was off by 1.1% and the ChiNext Price Index ended 1.8% lower.

Hong Kong's Hang Seng Index fell 1.4% to end at 18608.94, extending earlier losses. Shares tracked other Asian markets lower amid reduced bets for Fed rate cuts. Property and auto stocks led declines. Zhongsheng Group Holdings dropped 8.9%, Country Garden Services was down 8.25% and Longfor Group Holdings shed 5.6%. Bilibili closed 11% lower, although the company reported positive earnings. Meanwhile, advancers included China Resources Power, which rose 2.8%, and CNOOC, which was up 2.3%. The Hang Seng Tech Index was 2.5% lower. Hong Kong's April trade data is due Monday.

Japan's Nikkei Stock Average fell 1.2% to close at 38646.11. Recent remarks from Fed officials and stronger-than-expected U.S. PMI data have led to a pushback on Fed rate-cut expectations, strategists at OCBC Global Markets Research say in a note. The markets are pricing in 35 bps of rate cuts for 2024, down from 44 bps a week earlier, they add. Among the worst performers on the benchmark index were Fuji Electric, which slid 11%, Lasertec, which dropped 4.5%, and Advantest, which lost 4.5%. The 10-year JGB yield was up 0.5 bps at 1.005%.

India shares closed flat after hitting a record high for the second straight session. Investors are watching for further hints on potential interest rate cuts by the Federal Reserve, but a pickup in U.S. inflation reinforced bets it will probably remain on hold, analysts say. Among top gainers, Axis Bank and IndusInd Bank rose 0.8% and 0.1%, respectively. Meanwhile, Tata Consultancy Services was down 1.1% and Titan Co. lost 1.05%. Infosys was down 0.5%, and Hindalco Industries was also 0.5% lower after 4Q net profit rose and revenue was roughly flat. The benchmark Sensex closed barely changed at 75410.39.


Stocks in the U.K. slipped Friday, as the FTSE 100 Index declined 0.2% to 8321.16.

Among large companies, AJ Bell PLC posted the largest decline, falling 4.6%, followed by shares of National Grid PLC, which fell 3.7%. Shares of Deliveroo PLC fell 2.9%.

YouGov PLC was the biggest gainer during the session, surging 7.0%, and Ocado Group PLC surged 6.2%. John Wood Group PLC rounded out the top three movers on Friday, as shares surged 5.2%.

In Europe, shares closed mixed, with the STOXX Europe 600 Index losing 0.2% to 520.57, Germany's DAX was flat at 18,693.37 and France's CAC 40 slipped 0.1% to 8,094.97.

North America

Technology stocks helped push the S&P 500 higher Friday, capping off a rocky week in markets.

The broad U.S. stock index and the tech-heavy Nasdaq Composite rose for a fifth straight week. The Dow Jones Industrial Average snapped a weekly winning streak that had lasted since mid-April.

In daily trading Friday, the S&P 500 gained 0.7%, while the Nasdaq climbed 1.1% to a new record. The Dow added less than 0.1%, or about 4 points.

Major indexes were on pace to finish May with their best monthly performances of 2024. The Dow industrials crossed 40000 for the first time last week a day after data showed a key measure of inflation had posted its smallest increase in years, suggesting price pressures haven't reaccelerated.

The S&P 500 is up 11% in 2024 after climbing 5.3% so far in May. The broad U.S. stock index ended the week up less than 0.1%, while the tech-heavy Nasdaq Composite rose 1.4%.

Several Dow components had tough weeks. Boeing shares ended the week down 5.6% after the jet maker said it would burn billions of dollars more than anticipated in coming months. Salesforce shares declined 4.7%, weighed down Friday by concern about the outlook for enterprise software. Home Depot, 3M and McDonald's each fell more than 5%.

Looking forward, many investors are feeling upbeat. After a string of inflation reports came in hotter than expected, the report on April consumer prices helped calm investors' nerves. The economy has remained robust, defying expectations that the Fed's campaign against inflation would tip the U.S. into a recession.

And the outlook for corporate profits appears bright. Analysts expect that earnings from companies in the S&P 500 will rise 11% this year and 14% in 2025, according to FactSet.

"If the Fed stays higher for longer, that doesn't necessarily mean that stocks won't continue to perform," said Nancy Tengler, chief executive officer and chief investment officer of Laffer Tengler Investments. "I do believe we're in a bull market and I think it's pretty early."

Some investors are bracing for the possibility of increased turbulence ahead, especially if price pressures don't steadily subside. Survey data from the University of Michigan showed Friday that expectations for inflation edged up from a month earlier, remaining above the average from before the Covid-19 pandemic.

"We've gotten too cheerful in the expectation that inflation is just going to continue to come down and the Fed's going to cut," said Andrew Slimmon, head of the applied equity advisors team at Morgan Stanley Investment Management. "If we get inflation numbers that challenge that thesis, I think the market is going to struggle."

Earnings reports drove big moves in individual stocks Friday. Shares of Intuit fell 8.3% after executives said the number of people using its TurboTax product for free declined. Deckers Outdoor shares jumped 14% after the maker of Ugg boots and Hoka shoes beat Wall Street's forecasts for sales and profit. Shares of Ross Stores rose 7.8% after the discount retailer reported stronger-than-anticipated earnings and sales.

Chip giant Nvidia rose 2.6%, building on a record set Thursday after a strong earnings report.