ASX 200 Live Today - Tuesday, 7th July

Welcome to our live ASX coverage for Tuesday, July 7. Expect a high volume of posts pre-market and more periodic updates throughout the day. We'll be wrapping the blog up around 2:00 pm AEST. Let us know how we can make it even better.

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New updates

ASX 200 lower, US futures down

[2:05 pm] That's all for today. The S&P/ASX 200 is trading 0.26% lower, while S&P 500 and Nasdaq futures currently down 0.25% and 0.98% respectively. A very mixed session for local equities, where:

• Tech (+2.1%): A relatively broad move, with names like Catapult (+8.5%), Siteminder (+3.3%), NextDC (+3.2%0 and Megaport (+1.6%) trading higher. But supercharged from an outsized 8.7% rally for Wisetech after founder Richard White said he will step down from as the company's Chair.

• Financials (+1.0%): Now trading at the highest since 8 May (but up just 1.4% YTD). The Big Four Banks are all up around 1.5% at the time of writing

• Materials (-2.3%): Have spent most of the day trending lower, now on track to close at the lowest since 6 May and down 10% from the 18 June record close.

This is the recent trend, or rather the lack of one. Software and tech are showing some life, though not the high conviction kind of comeback. Financials are catching a bid, caught between easing RBA rate hike expectations and a weakening property market. The high-flying commodity sector has come under fire, and miners are increasingly on the back foot, struggling to bounce after a run of sharp reversals where 10 to 15% rallies to record highs gave way to 10% pullbacks. Overall, a very mixed market. Adding to the volatility, South Korea's Samsung is down 8.8%, despite reporting a better-than-expected Q2 operating profit of US$85.4 billion, up 1,857% year-on-year.

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Neu Horizon Uranium flops on ASX debut

[12:49 pm] The uranium junior made its debut at 12:00 pm after successfully raising $12 million at 20 cents per share.

• Shares opened at 13.5 cents, currently 14.5 cents (down 27.5% from the offer price)

• The IPO was seeking $12-15 million, implying low investor demand

• Swedish portfolio spans ~110,000Ha across 5 projects, with Arvidsjaur drill-ready and boulder samples over 1% U3O8 and a historic intersection of 17m at 1,000ppm U3O8 from 60m

• Canadian portfolio covers ~35,000Ha on the underexplored northern rim of the Athabasca Basin, where NHU can earn 80% of the Woods Projects from Fortune Bay by spending $3m by end-2027 (~$635k spent to date)

• Vilhelmina carries a historic exploration target of ~150Mt at ~350ppm U3O8, though this is a 1964 estimate later supported by a 2008 report, not a JORC resource

• Near-term catalysts include a maiden 1,000m to 1,500m heli core drill program at the Woods Projects and drilling across the Swedish projects from Q4 2026

Company page: Neu Horizon Uranium (NHU)

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Nine locks in NRL and NRLW broadcast rights through to 2034

[12:44 pm] The seven-year deal keeps free-to-air league on Channel 9 and 9Now at what management frames as an effective annual CPI increase.

• Annual cost to Nine of $145m cash, offset by $10m of committed NRL advertising spend and a further $15m of annual contra

• Rights run 2028 to 2034 and cover three live NRL games a week, the Finals series, Test matches, plus exclusive Grand Final and State of Origin coverage

• Also secures 33 live NRLW weekly games and the NRLW Finals, with exclusive Women's State of Origin rights

• Live NRL broadcast on Channel 9 and 9Now to be broadly in line with the current contract from 2028

• Management says rugby league delivered double-digit revenue growth in Season 2025 on 2024 despite a challenging advertising market

This was announced at 12:18 pm AEST, Nine shares are up 2.2% at the time of writing to 93 cents.

Company page: Nine Entertainment (NEC)

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Wall Street warms to India as oil pressures fade and rupee rebounds

[12:41 pm] After more than a year on the sidelines, global banks including Citi, Goldman, Macquarie and Barclays are turning constructive on Indian assets.

• Indian equities beat emerging-market peers in June by the most in seven months, while global funds bought a record US$4.4bn of index-eligible government debt and stock outflows were the smallest in four months

• Active EM fund manager weightings sit at 12-year lows for China and six-year lows for India, leaving room for rotation as doubts grow over the AI-heavy Korea and Taiwan rallies

• Goldman estimates another US$15bn in passive inflows if India joins the Bloomberg Global Aggregate Index

• Key risks remain a weak monsoon and developing El Nino threatening food prices, plus a stronger US dollar and higher-for-longer rates that could temper inflows

Source: Bloomberg

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Samsung profit surges 19-fold but chip stocks slump as investors sell the news

[12:41 pm] A stellar earnings beat wasn't enough to satisfy a market with stretched valuations, triggering a rotation out of Asian tech into cheaper sectors.

• Quarterly profit surged 19-fold on booming AI demand, but came in just 6% above ests

• Samsung shares fell as much as 7.9% in Seoul, dragging down SK Hynix and Japan's Kioxia

• MSCI's Asian tech gauge dropped as much as 2.7% while financials and consumer shares rose

• Analysts flagged a "sell the news" dynamic, with extremely high expectations already priced in

Source: Bloomberg

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Lithium stocks lower, Chinese lithium prices slip

[12:04 pm] A fairly weak day for most lithium stocks, with a sharp 4-5% dip for Liontown and PMET. Chinese lithium carbonate futures are down 0.6% in early trade to 164,560 yuan a tonne.

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G8 Education shares surge 17% on debt maturity extension

[11:58 am] The early childhood education provider has prolonged its credit lines to strengthen its funding profile and weighted average debt maturity.

• Maturity for one of the company's $100 million revolving debt facilities has been extended from December 2027 to January 2029

• The remaining $100m revolving credit line and a $40m bank guarantee facility maintain their existing December 2029 maturities, with banking covenants remaining in full compliance.

Company page: G8 Education (GEM)

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Gold stocks trading broadly lower

[11:23 am] The S&P/All Ords Gold index is down 2.7% in early trade as gold prices slip 0.7% to US$4,134/oz at the time of writing.

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Copper stocks dip

[11:08 am] Copper stocks are trading broadly lower, as copper prices slip 0.47% in early trade to US$6.23/lb, offsetting yesterday's 0.5% gain.

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Stocks on the move: Wisetech, Netwealth and Cobram

[10:58 am] Wisetech caught an aggressive bid, Netwealth was volatile at the open but also started to trend higher.

• WiseTech Global climbed 7.1% following the appointment of Raelene Murphy as independent chair to counter media distractions and short-seller risks. Founder Richard White will remain on the board as an executive director and continue his core operational focus as chief innovation officer.

• Netwealth Group jumped 7.0% after securing a landmark domestic platform solution mandate with Morgan Stanley Wealth Management Australia. The group flagged robust guided FY27 net inflows of $18bn to $20bn, overshadowing a temporary compression in its guided FY27 EBITDA margin to 47% for software investment.

• Cobram Estate Olives tumbled 6.7% after revealing a 20% drop in total 2026 olive oil production to 11.3 million litres and a legal dispute over a $31.9m US acquisition price adjustment.

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ASX 200 slips in early trade

[10:26 am] The ASX 200 is down 0.15% as gains for tech, healthcare and major banks was offset by weakness across energy and mining, most notably gold, copper and lithium stocks.

S&P/ASX 200 sectors (Source: Market Index)

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Traders turn most bullish on the US dollar since 2015 as Fed rate hikes loom

[10:24 am] A hawkish pivot from the Federal Reserve combined with geopolitical shocks in the Middle East has triggered a massive capital reallocation into the greenback.

• Bullish net futures wagers on the US dollar reached US$39.7bn as of June 30, marking the highest level of investor optimism in over a decade.

• The currency surged 2% across June following vows from newly appointed Federal Reserve Chairman Kevin Warsh to aggressively target price stability.

• Market expectations have rapidly adjusted to price in at least one Fed interest rate hike this year, a stark pivot from early 2026 when rate cuts were anticipated.

• Supply shocks from the conflict in Iran and the subsequent closure of the Strait of Hormuz have reinforced the dollar through both safe-haven demand and the position of the US as a major energy exporS&P/AXter.

• Some Wall Street strategists warn the rally could stall during July following weaker-than-expected June payrolls data that showed US hiring is slowing sharply.

Source: Bloomberg

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Wisetech soars to three-week high

[10:22 am] Wisetech is now up 6.2% (and still climbing) since the 10:02 am announcement.

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WiseTech appoints new independent chair as founder warns of short-seller risk

[10:12 am] The logistics software giant has elevated its lead independent director to the chair role to counter governance distractions stemming from personal media allegations against its founder.

• Raelene Murphy has been appointed independent chair with immediate effect, moving from her prior role as lead independent director.

• Founder Richard White will remain on the board as an executive director and continue in his key operational role as chief innovation officer.

• White stated that the leadership transition aims to remove unnecessary distractions and mitigate the potential for personal media attacks to encourage short-selling activity.

• A formal board review into the historical media allegations against White was completed in 2025 utilizing external legal advisers including Herbert Smith Freehills.

• The company is actively searching for an additional independent non-executive director to bring the total number of independent board members to five following a series of renewals since March 2025.

This announcement was released at 10:02 am, Wisetech shares are up 2.2% to $36.16 at the time of writing.

Company page: WiseTech Global (WTC)

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Top ASX 200 gainers and losers

[10:06 am] Netwealth rallies on its FY26 trading update and guidance, while uranium, gold and lithium stocks dip in early trade.

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Cobram Estate Olives production falls 20% amid US acquisition price dispute

[9:57 am] The Australian olive oil producer has wrapped up its 2026 harvest with lower volumes while entering a formal legal process to claw back up to $31.9 million from its California acquisition.

• Total olive oil production down 20% to 11.3ML compared to 14.2ML in the prior year.

• Olives milled down 7% to 74.3Kt and production from owned groves down 20% to 10.6ML.

• Management anticipates the 2027 crop will be substantially higher than 2026 and will surpass the previous on-year harvest achieved in 2025.

• Production during the next growing season faces potential margin headwinds from lower forecasted rainfall and higher water costs.

• California Olive Ranch is unlikely to achieve its $7.125m half-year EBITDA earn-out threshold, meaning no additional payment will be due to the sellers.

• A formal purchase price adjustment has been claimed to reduce the US acquisition cost by up to $31.9m, which the sellers have disputed in full through an ongoing legal process.

Company page: Cobram Estate Olives (CBO)

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Netwealth secures Morgan Stanley platform mandate and issues strong FY27 inflow guidance

[9:56 am] The wealth platform provider has expanded its institutional footprint and updated the market on its medium-term growth strategy alongside a planned technology investment step-up.

• Netwealth secured an expanded agreement with Morgan Stanley Wealth Management Australia to provide a domestic platform solution, marking its first major win in the $600bn stockbroking and private wealth market.

• Expected FY26 FUA net flows will reach $15.4bn, following a temporary softening in the latter half of Q4 driven by macroeconomic volatility and proposed tax changes.

• Reaffirmed FY26 EBITDA margin guidance sits at approximately 49% alongside a $12m investment in capitalised software.

• Guided FY27 FUA net flows are expected to rise 17% to 30% to between $18bn and $20bn, driven by underlying business momentum and new growth initiatives.

• Guided FY27 EBITDA margin will decline to approximately 47% to absorb a planned step-up in growth and technology investments.

My consensus numbers are a bit dated (Feb-26), which has FY26 flows approx 4% below, FY27 net flows ~10% above but FY27 EBITDA margin well-below ~50% expected.

Company page: Netwealth (NWL)

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Fenix Resources ships record June quarter, hits FY26 guidance and targets 14% growth in FY27

[9:34 am] The Mid-West iron ore miner shipped a record 1.3Mt in the June quarter to close out FY26 within its upgraded guidance range, and set FY27 guidance implying a 14% lift in output at steady costs.

• Record June quarter shipments of 1,299k wmt across 21 vessels, up 33% on the March quarter and 71% on the prior corresponding period

• FY26 shipments of 4.4Mt landed within the upgraded 4.2-4.8Mt range (originally 4.0-4.4Mt, revised up in December 2025)

• FY27 guidance of 4.7-5.3Mt, a 14% increase on FY26 at the midpoint, with C1 cash costs held at A$70-80/wmt FOB Geraldton

• Cash up 42.6% to $81.0 million at 30 June, after funding the Beebyn-W11 build, Beebyn Hub infrastructure, fleet expansion and Weld Range milestone payments

Company page: Fenix Resources (FEX)

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Andean Silver hits highest grades ever at Cerro Bayo

[9:25 am] Infill drilling at the Chilean silver-gold project returned the best results in its history, supporting the conversion of Inferred resources to higher confidence categories ahead of feasibility and restart studies.

• Best-ever intercept of 1.4m at 25,340g/t AgEq (3,045g/t Ag and 268.6g/t Au) at the Trinidad vein, within a broader 2.4m at 15,558g/t AgEq

• Trinidad, drilled for the first time in over 10 years, is showing continuity over 800m of strike, with gold-rich shallower lodes accompanying the high-grade silver

• Infill results across the Laguna Verde mine complex point to strong continuity within Inferred resource areas, underpinning the case for upgrades to Measured and Indicated

• Cash of $53.4 million at the end of the March quarter funds ongoing drilling and feasibility work

Company page: Andean Silver (ASL)

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Bellevue Gold beats guidance midpoint and cuts hedge book ahead of schedule

[9:21 am] The Western Australian gold miner delivered full-year output above the midpoint of guidance, lifted cash and gold on hand to $206.4 million, and slashed forward sales commitments, leaving it free of contractual hedge deliveries until mid-2027.

• June quarter gold production of 41,643 oz at an average head grade of 4.5 g/t, with 42koz poured

• FY26 production of 143.5koz (143.0koz poured) landed in the upper half of the 130-150koz guidance range, with AISC also within the $2,600-$2,900/oz guidance

• Underlying free cash flow of about $110 million for the quarter, before voluntary hedge pre-deliveries, down from $158 million in the March quarter

• Cash and gold on hand rose $25.7 million to $206.4 million at quarter end

• Over FY26, Bellevue built cash and gold by about $55 million while reducing the hedge book by 83koz, a 55% cut from the start of the year

Company page: Bellevue Gold (BGL)

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West African Resources on track for 2026 guidance despite Burkina Faso permit setbacks

[9:17 am] The gold miner produced 125,179 ounces in the June quarter and remains on course for full-year output of 430,000 to 490,000 ounces, though pending government permits have curbed open-pit mining at Kiaka and delayed underground development at Sanbrado.

• Q2 group gold production of 125,179 oz, with year-to-date output of 232,905 oz keeping WAF on track for 2026 guidance of 430,000 to 490,000 oz

• Q2 gold sales of 110,737 oz at a realised price of US$4,556/oz, with YTD sales of 214,883 oz at US$4,744/oz

• Sanbrado produced 57,608 oz, up 37% q/q on a 24% higher mill grade from stronger underground tonnes and grade.

• Kiaka produced 67,571 oz, up 3% q/q on a 6% lift in mill throughput

• Kiaka open-pit mining was cut in Q2 after the government withheld the operating permit for WAF's on-site explosives facility, forcing the miner to source explosives externally and reweight the plan to free-dig ore

Company page: West African Resources (WAF)

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Lynas signs long-term deal with JS Link for Malaysian magnet factory

[9:07 am] The agreement expands Lynas into the magnet supply chain outside China, pairing a $50m equity stake with a long-term rare earths supply arrangement.

• Lynas will invest approximately $50m in JS Link ordinary equity to support construction of the Kuantan magnet factory

• JS Link will build the factory with capacity of 3,000 tonnes per annum of NdFeB permanent sintered magnets, near Lynas's existing Malaysia advanced materials plant

• Lynas will exclusively supply rare earth materials to JS Link's factories in Yesan, South Korea and the planned Malaysian site at commercial prices until January 2038

• The deal follows a July 2025 MoU and delivers on Lynas's Towards 2030 goal of expanding into the outside-China metal and magnet supply chain

Company page: Lynas Rare Earths (LYC)

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South32 nears key US approval for Hermosa critical minerals project

[9:04 am] The Final Record of Decision on the Arizona zinc and manganese project is scheduled for issuance today, clearing a major federal permitting hurdle.

• The US federal permitting dashboard lists the Final Record of Decision for the Hermosa Critical Minerals Project as scheduled for 7 July 2026, following the Draft Record of Decision published on 6 June

• Hermosa is a zinc and manganese operation in Santa Cruz County, Arizona, holding one of the largest undeveloped zinc resources in the world plus battery-grade manganese potential, both US-designated critical minerals

• South32 estimates total construction cost at approximately US$2.16bn, which would be the largest-ever investment in Santa Cruz County and support around 1,646 direct and indirect jobs

• South32 has sought US$20m under the Defense Production Act Title III, matched by US$43m of its own investment, but says the project can proceed without federal financial assistance

Company page: South32 (S32)

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a2 Milk lifts FY26 NPAT guidance despite China label supply hit

[9:01 am] The dairy group now expects full-year profit slightly ahead of last year, upgrading from prior guidance of similar to down, as resolved supply issues and strong non-China-label sales offset a 14% drop in China label formula.

• NPAT now guided slightly up on FY25, vs. prior guidance of similar to down, with underlying NPAT expected to be up and consensus at NZ$199.9m

• Revenue of approximately NZ$1.97bn, up over 12% on FY25, broadly in line with the NZ$1.98bn consensus

• EBITDA margin to land at the high end of the 14.0% to 14.5% April guidance range

• Cash conversion to be approximately 70%, well above the 50% flagged in April guidance

• China label IMF sales fell about 14% on FY25 after 4Q26 supply shortfalls forced many users to switch brands, though English label, Other Nutritionals and Liquid Milk were all significantly up

• Supply chain issues have now been substantially resolved with stock levels back to target, and audited FY26 results plus FY27 outlook are due on 17 August 2026

NZX-listed A2 Milk shares are up 2.8% in early trade on Tuesday.

Company page: a2 Milk Company (A2M)

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Fortescue served with class action over workplace harassment allegations

[8:59 am] The Federal Court proceeding covers current and former women employees over a near two-decade period, with damages unspecified at this early stage.

• Fortescue has been served with a representative proceeding in the Federal Court of Australia alleging workplace sexual harassment and sex discrimination

• The claim is brought on behalf of current and former women who worked at Fortescue's Australian workplaces between 1 February 2006 and 5 December 2025

• The proceedings are at an early stage and the amount of damages sought is unspecified

• Fortescue said it is committed to a safe, respectful and inclusive workplace and that such conduct has no place at the company

Company page: Fortescue (FMG)

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Samsung set to become world's most profitable company on AI memory boom

[8:55 am] CEO Kim says this year's profit alone will exceed Samsung's cumulative earnings across the four decades since it entered the semiconductor business.

• Samsung is expected to post Q2 2026 operating profit of roughly 84.6trn to 86trn won (US$55bn to US$56bn), and over US$200bn for the full year

• If confirmed, that would top Nvidia's Q1 operating profit of US$53.54bn, making Samsung the single most profitable company on Earth for the quarter

• Kim said one year of the 2026 AI boom is on track to out-earn the combined nominal profits of every prior memory cycle since the early 1980s, spanning the dot-com boom, the smartphone transition and the 2017 cloud supercycle

• The surge reflects the pricing power in DRAM and high-bandwidth memory driving the current AI buildout

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US services growth slows in June but hiring picks up as cost pressures ease

[8:45 am] The ISM services index eased slightly while the employment gauge jumped the most since 2024, helped by falling energy prices after the US-Iran deal.

• ISM services index fell to 54.0 from 54.5, in line with the 54.0 consensus, with new orders easing to 55.1 from 57.3 and supplier deliveries slipping to 54.4 from 55.2

• Employment index rose to 51.2 from 47.9, its first expansion in four months and the biggest jump since 2024, with World Cup-related hiring cited as a contributor

• The prices gauge fell to a four-month low of 67.7 from 71.2, its first reading below 70 since February, as oil and gasoline costs eased after the interim US-Iran deal

• Inventories dropped to 51.2 from 62.5, the second-lowest since October, suggesting firms have stopped stockpiling against war-related disruptions

• Fourteen industries grew, led by arts and entertainment, transport and warehousing, and accommodation and food services, while four contracted, with resilient demand in construction, infrastructure and health care and continued support from AI and data centre activity

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Waller backs flexible forward guidance as Warsh moves Fed away from the tool

[8:43 am] The Fed governor defended policy signalling as a useful if imperfect instrument, days after the new chair pledged a more data-driven approach.

• Waller said forward guidance remains valuable and helped tighten conditions ahead of pandemic-era hikes, but conceded it is "more art than science" and has at times tied officials' hands

• His comments push back on new Chair Kevin Warsh, who has vowed to move away from forward guidance toward an approach more attuned to incoming data

• Waller said labour market risks have "completely flipped around" and now show signs of stabilising, allowing policymakers to refocus on inflation

• Warsh declined to offer a rate forecast, citing his dislike of forward guidance

Source: Bloomberg

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Hormuz traffic recovers and Saudi Arabia slashes prices to Asia

[8:42 am] Easing US-Iran tensions and deep Saudi discounts are reshaping crude flows, drawing Chinese buyers back to Gulf supply.

• Traffic through the Strait of Hormuz has more than quadrupled over the past week as confidence in the US-Iran ceasefire builds

• Saudi Aramco cut prices on all grades to Asia, with its flagship Arab Light discount now the deepest since June 2020, after raising premiums to record highs at the war's outbreak

• China bought at least 26mn barrels for July-August delivery from Qatar, Saudi Arabia, the UAE and Iraq, well above normal ad hoc levels, having drawn down commercial stocks by nearly 1mn barrels a day in May and June

• Shipping risk remains elevated, with Western navies calling the threat "substantial" and reporting the centre of the strait mined, prompting vessels to hug the Oman coast or cross with transponders off

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SK Hynix seeks AI investors in $29bn US listing

[8:42 am] The memory maker's Nasdaq debut, expected on 10 July, aims to close its long-standing valuation gap with rival Micron and open direct access to US capital.

• The $29bn listing may be the largest-ever first-time share sale by a foreign company, with SK Hynix trading at 6.2x forward earnings vs. Micron at 7x

• SK Hynix is projected to deliver 221trn won (US$144bn) in 2026 net income on sales of 355trn won (US$231bn), up 415% and 265% respectively on 2025

• The listing gives US investors frictionless exposure via regular-hours trading and eventual Nasdaq 100 inclusion, replacing illiquid unsponsored ADRs

• A cross-market structure should draw arbitrage flows between the ADRs and Seoul shares, though full convertibility remains unclear and could sustain a premium

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Microsoft cuts 4,800 jobs as Xbox downsizes and spins off four studios

[8:40 am] The software giant is trimming 2.1% of its workforce in its latest AI-era cost push, with the gaming unit bearing the brunt.

• Microsoft is eliminating 4,800 roles immediately, or 2.1% of its workforce, following a first-ever voluntary retirement program that saw more than a third of eligible staff accept

• Xbox will cut 3,200 people in total, around 20% of the division, with 1,600 going now and the rest through fiscal 2027

• Four studios will be spun out, with Compulsion Games and Double Fine returning to independence, Ninja Theory and Undead Labs moving to new ownership, and Arkane Studios reviewing options

• Xbox CEO Asha Sharma said the division would "return to growth in 2027", framing the year-long restructuring as unavoidable

• Microsoft is the worst-performing megacap tech stock in 2026, down 19% as of Friday's close, on fears generative AI could displace enterprise software while its own AI offerings have yet to land

Source: CNBC

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Investors eye old-guard stocks as AI rally stalls, Markets Pulse survey shows

[8:39 am] Doubts about the durability of the AI trade are prompting a rotation toward traditional sectors, with respondents split on the direction for yields and the dollar.

• 53% of the 221 respondents said they are inclined to buy more old-economy shares and take profits from the tech surge into the second half

• Concerns centre on stretched valuations for AI-linked names like Nvidia, leaving them exposed if hyperscalers pull back on spending

• The SOX has fallen for two straight weeks after nearly doubling between late March and late June, while South Korea's Kospi has also retreated

• Survey participants see the Kospi (34%) as most likely to reverse its run, ahead of the SOX (22%)

• Nearly 60% expect yields and the dollar to keep moving in tandem through year-end as both track the Fed, though views are split on direction

• On oil, 73% said they would sell oil and buy equities following the US-Iran de-escalation

Source: Bloomberg

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Morgan Stanley's Wilson sees rotation from chips to hyperscalers

[8:39 am] Michael Wilson expects US benchmarks to stay under near-term pressure as investors unwind momentum in semiconductors and rotate into AI hyperscalers.

• Wilson favours hyperscalers such as Microsoft, Amazon and Meta over semiconductor stocks in the near term, citing their strong core businesses

• He expects hyperscalers to stabilise while chipmakers correct, calling the current divergence unsustainable

• The Philadelphia Semiconductor Index has slumped nearly 14% from last month's record on valuation concerns, but remains up 123% since September, versus a UBS hyperscaler basket down 2% over the same period

• Wilson holds an 8,000 year-end target for the S&P 500, implying gains of around 7% from current levels

• He also sees consumer discretionary, transport and biotech benefiting from the rotation out of chipmakers

• JPMorgan's Mislav Matejka echoes the view that the rally will broaden beyond tech in the second half, noting AI is unlikely to be the only story

Source: Bloomberg

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Wall Street starts week strong as tech leads, Dow hits record

[8:36 am] US equities extended last week's rally on Monday, with defence and tech outperforming while old-economy sectors lagged.

• Dow Jones climbed 0.29% to a record close of 53,055.91

• S&P 500 gained 0.72% to 7,537.43

• Nasdaq Composite advanced 1.12% to 26,121.16

• Semiconductors rebounded around 2% (SMH) after two straight losing weeks, having shed 3.2% last week despite an 80%-plus first-half gain

• Defence stocks stood out, with the iShares Aerospace & Defence ETF hitting an all-time high on its longest win streak since February, as Northrop Grumman rose more than 10% and RTX more than 7% over the past week

• Old-economy names lagged, with home construction sector down around 2% and both retail and healthcare sectors off more than 1%

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Good morning

[8:26 am] ASX 200 futures are up 3 pts (+0.03%) after a mixed overnight session on Wall Street, where major benchmarks finished broadly higher despite relatively weak breadth.

The overnight session in a nutshell:

• US benchmarks finished higher despite defensive sectors like Healthcare, Utilities, Staples and Real Estate finishing lower

• Chips and AI led, Broadcom extending its Apple chip deal to 2031, TeraWulf landing a $19bn Anthropic lease and SK Hynix launching a large US listing

• Microsoft is planning to cut 4,800 jobs, A2 Milk upgraded its FY26 earnings guidance, coffee prices surged 15% overnight and Neu Horizon Uranium is set to debut at 12:00 pm