ASX 200 hits two-month high on Wall Street rally

NextDC was among the standout movers, as investors piled back into technology names after the global bounce in growth stocks. The stock’s move reinforced how quickly sentiment can turn when US markets stabilize, particularly for Australian tech companies that have been hit hard by higher yields and recession fears.

Vicinity Centres, by contrast, moved lower as the market digested the fallout from David Jones, which adds another drag to the retail property sector already facing pressure from cautious consumers, higher financing costs and changing tenancy risk. Any disruption at a major anchor tenant can ripple through landlords’ rental income expectations and valuations.

The ASX advance was broad enough to lift eight of 11 sectors, with technology and mining leading the way, but energy was under pressure as oil slumped more than 8%. That decline matters for local producers and the broader earnings outlook, since lower crude prices can quickly cut into sector profits and cash flow.

The move also tracks a wider shift in global macro sentiment. Investors are rotating back into equities on hopes that a divided US Congress will limit policy shocks, while the fall in oil eases some inflation pressure and supports the case for less aggressive central bank tightening.

For investors, the day’s action shows the market is still being driven less by domestic earnings news than by external macro forces — US politics, oil and Wall Street’s risk appetite. The next test is whether the rally can hold if central banks stay hawkish and global growth concerns return.