ASX set to rise as Wall Street rebounds

Sydney Morning Herald

by Stan Choe

February 24, 2026

AI-Generated Deep Dive Summary

The US stock market has rebounded this week, driven by renewed optimism around artificial intelligence (AI) technology. The S&P 500 gained 0.8%, while the Dow Jones Industrial Average rose 410 points, or 0.8%, and the Nasdaq composite climbed 1.1%. This recovery follows a sharp decline on Monday, when fears about AI's potential downsides weighed heavily on markets. The Australian sharemarket is expected to rise, with futures pointing to a gain of 59 points, or 0.7%, at the open. The rally was fueled by a multiyear deal between Advanced Micro Devices (AMD) and Meta Platforms. Under the agreement, AMD will supply chips to power Meta's AI ambitions, while Meta has the option to purchase up to 160 million shares of AMD stock for $1 each. This deal highlights the excitement surrounding AI's potential to transform industries and boost economic productivity. AI-related fears had previously led to sharp declines in sectors like software, trucking logistics, and financial services. However, the announcement of new AI tools by Anthropic, including integrations with FactSet data, suggested that AI may enhance existing systems rather than replace them entirely. This shift helped ease investor concerns and contributed to a rebound in stocks like IBM, Salesforce, and AppLovin. Meanwhile, Wall Street's rally was also supported by strong profit reports from major US companies. Keysight Technologies saw the biggest gain in the S&P 500 after exceeding analysts' expectations for revenue and profits. Home Depot also outperformed forecasts despite ongoing consumer uncertainty, while Coinbase Global dropped slightly as bitcoin prices fell. The rebound on Wall Street has ripple effects globally, including a positive outlook for the Australian sharemarket. With futures pointing to a rise of 59 points at the open, Australian investors are likely to benefit from this AI-driven optimism. Companies like Woolworths, Flight Centre, and WiseTech are among those set to report earnings this week, further driving market sentiment. Overall, the US stock market's recovery underscores the ongoing impact of AI on global economics and investor sentiment. While concerns about AI's potential downsides remain, the current rally highlights its transformative potential across industries. For Australian investors, this positive momentum offers opportunities for growth and reinforces the interconnectedness of global markets in an era driven by technological innovation.

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Originally published on Sydney Morning Herald on 2/24/2026