US sharemarkets finished mixed overnight as another sell-off in semiconductor stocks offset a sharp decline in oil prices, with investors preparing for a busy week of earnings and central bank decisions.
The Dow Jones Industrial Average rose 262.83 points, or 0.51%, to 52,210.08, while the S&P 500 edged up 0.02% to 7,413.18. The Nasdaq Composite slipped 0.18% to 24,932.08.
Technology stocks remained under pressure, with the VanEck Semiconductor ETF falling more than 2%. Advanced Micro Devices dropped 5%, Teradyne lost 4% and Micron Technology eased around 2%, while ASML tumbled almost 6% following reports China is developing its own deep ultraviolet lithography machines. Investors also continued to reassess valuations across the AI sector amid rising competition and uncertainty over future spending.
Oil prices fell sharply after the US and Iran paused military action, easing concerns over potential supply disruptions. Brent crude dropped 8.7% to US$88.36 a barrel, while West Texas Intermediate fell 7.5% to US$82.61.
Attention now turns to a critical week for markets, with earnings due from Amazon, Apple, Meta Platforms and Microsoft. Investors will also closely watch the Federal Reserve’s policy meeting, with expectations the central bank will leave rates unchanged this week while keeping the door open to a possible increase later this year.
Australian Market Outlook
Australian shares are expected to open slightly lower following another weak session for global technology stocks.
S&P/ASX 200 futures are down 20 points, or 0.2%, to 8,821.
Locally, Whitehaven Coal and Iluka Resources are due to report earnings, while Reserve Bank Governor Michele Bullock is scheduled to speak at the Anika Foundation Fundraising Lunch in Sydney, with investors looking for any fresh clues on the outlook for Australian interest rates.
