US sharemarkets edged higher on Monday as technology stocks continued to recover from last week’s sell-off, while the Dow Jones Industrial Average pushed to fresh record levels. Investors remained cautious but constructive as they looked ahead to a heavy week of economic data and corporate earnings following sharp swings in sentiment.
The S&P 500 rose 0.47% to close at 6,964.82, extending its rebound for a second session. The Nasdaq Composite gained 0.9% to finish at 23,238.67, led by renewed strength in large-cap technology. The Dow added 20 points to end at 50,135.87, marking both an intraday and closing record.
Technology regains footing
Semiconductors were again among the strongest performers. Nvidia climbed 2.5% and Broadcom advanced 3.3%, extending gains from Friday’s powerful rebound. Oracle surged 9.6% after an analyst upgrade, driven by optimism around artificial intelligence demand and companies tied to OpenAI’s ecosystem.
The moves followed a sharp turnaround late last week, when US markets rebounded after heavy losses earlier in the period. That pullback was driven largely by selling pressure in software stocks, alongside a broader risk-off move that briefly hit cryptocurrencies and high-growth names.
Valuations and rotation in focus
Investors are now weighing whether the recent recovery has durability or simply reflects short-term positioning after an aggressive sell-off. Valuation metrics in technology have compressed materially relative to recent history, prompting some reassessment of whether the sector has become more attractive following the correction.
At the same time, market participants remain alert to the potential for renewed rotation if upcoming earnings reports fail to meet expectations. Coca-Cola and Ford Motor are among the companies due to report in the coming sessions, offering fresh insight into consumer demand and industrial conditions.
Critical data ahead
Attention is also turning to delayed US economic data releases. The January jobs report is due on Wednesday after being postponed by the partial government shutdown, following a weak private payrolls reading last week. Economists expect modest employment growth. The January consumer price index is scheduled for Friday, with inflation forecast to remain contained at 2.5% annually.
Australian sharemarket outlook
Australian shares are set to open higher, tracking continued strength in US technology stocks. ASX 200 futures are pointing up 32 points, or 0.4%, to 8,857, suggesting a positive start to the local session.
Locally, reporting season will gather momentum this week. Results due on Tuesday include Amotiv and Region Group, with a heavier concentration of earnings expected on Wednesday and Thursday.
On the data front, Westpac will release its February consumer confidence survey mid-morning, followed by NAB’s January business confidence and conditions report. Offshore, investors will also be watching US retail sales data due early Wednesday morning, the first of several key global economic releases this week.
