ASX Jumps 1.2% as Tech, Gold Stocks Rally
The Australian sharemarket jumped 1.2% on Thursday as investors piled back into technology stocks after artificial intelligence poster child Nvidia reported earnings that blew past expectations.
The S&P/ASX 200 Index rose 104.8 points, to 8552.7 at the closing bell, rebounding from its lowest level in almost six months as the local tech sector jumped 2.4%. Nine out of the 11 sectors were in the green.
The All Ordinaries were up 1.3%.
Nvidia shares are up more than 5% in after-hours trading after the US chip maker reported third-quarter revenue of $US57 billion ($88 billion) and forecast revenue for Q4 to hit $US65 billion which is about $US3 billion more than the market had predicted.
The ASX 200 had fallen about 7% from its peak in late October through yesterday amid concerns about frothy valuations and an AI bubble.
“Nvidia’s numbers point to a simple truth showing this isn’t a bubble popping,” said eToro market analyst Farhan Badami. “In fact, I feel we’re still in an early innings of a technology cycle that’s reshaping entire industries.”
On the ASX, tech stocks climbed as Nasdaq futures point to a strong session ahead for Wall Street, climbing 1.7%, while the S&P 500 contracts are up 1.2%.
Block led the local tech rally, rocketing 10.9% to $98.16, while WiseTech were up 2.1% to $64.21 and TechnologyOne added 4.4% to $30.57.
The mining sector was also stronger, as gold stocks extended their gains as the precious metal holds above $US4100 an ounce and as UBS upgraded its gold outlook to a peak of $US4750 an ounce from $US3900 previously.
Evolution Mining soared 3.3% to $11.40, Northern Star 3.8% to $26.56 and Newmont 1.2% to $134.67.
Lynas Rare Earths was up 1.8% to $15.71 after earlier rallying more than 6% after UBS upgraded the stock, while lithium producer Liontown Resources rocketed 9.6% to $1.605 amid a report from Morgans that said its inaugural online auction of Kathleen Valley spodumene concentrate showed lithium prices were rebounding faster and earlier than expected.
Financials added support as index heavyweight Commonwealth Bank rose 1.1% to $153.
In company news, DroneShield fell 4.1% to $1.89 as it responded to a price query letter from the market operator after three directors, including chief executive Oleg Vornik, sold $70 million worth of shares last week. The company said the trio did not agree to time their selling.
Peet Ltd rose 5.5% to $2 as the property developer said it expected a 2026 fiscal year net profit of as much as $78 million, up 34% on 2025, reflecting strong operational performance and favourable market conditions.
Engineering group Worley fell 3.2% to $13.22 as it received a big protest vote against its remuneration report for the second year in a row, with 20.42% of votes cast against.
A2 Milk rose 0.9% to $9.30 after it upgraded its FY26 revenue guidance. Broker Morgans said that while the trading update was positive, the shares were fully valued.
Magellan Financial fell 0.7% to $9.21 after its head of global equities, Arvid Streimann, resigned amid an investigation into an alleged relationship with a junior employee.
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