ASX 200 rebounds as Wall Street rallies boost local market

The Australia 200 trades 71 points (0.82%) higher at 8810 as of 2.15pm AEST.

ASX 200 rebounds as Wall Street gains and Fed commentary stabilise markets

The Australia 200 (ASX 200) has rebounded above 8800 today, recovering half of the ground it lost in yesterday’s session, which wiped approximately $53 billion from the market capitalisation of the local bourse.

The rebound followed a positive session on Wall Street, as soft United States (US) jobs data and dovish Federal Reserve (Fed) commentary eased concerns in bond markets that were threatening to become uncontrollable. Additionally, Alphabet shares surged 9.14%, leading tech stocks higher after a US judge ruled against breaking up its parent company, Google.

ASX 200 stocks

Consumer discretionary sector

• Domino’s Pizza rose 5.45% to $14.91 today, after hitting its lowest level since February 2014 yesterday. This follows an ASX filing revealing that its largest shareholder, Jack Cowin, bought 335,000 shares last week.
• Baby Bunting added 3.85% to $2.97
• Myer Holdings increased 2.73% to $0.65
• Super Retail Group climbed 1.4% to $18.32
• Woolworths added 1.68% to $27.61, as buyers took advantage of its recent 18% price drop.

Energy stocks

Energy stocks came under pressure today as crude oil plunged 2.82% overnight to $63.77. The decline was primarily driven by reports that the Organisation of the Petroleum Exporting Countries Plus (OPEC+) is considering a production increase at its upcoming meeting, which surprised traders expecting unchanged production quotas.

• Woodside Energy fell 2.25% to $25.36
• Santos declined 1.15% to $7.74
• Beach Energy fell 0.63% to $1.18.

Financial sector

With calm returning to the bond markets and yields falling overnight, the ASX 200's gains today have been driven by the interest-rate-sensitive financials and consumer-facing sectors.

• Westpac surged 2% to $37.89
• National Australia Bank (NAB) rose 1.75% to $42.72
• Commonwealth Bank of Australia (CBA) lifted 1.68% to $167.31
• Australia and New Zealand Banking Group (ANZ) climbed 1.65% to $33.33.

Materials sector

The big mining stocks gained as iron ore futures in Asia rose 1.27% to $104.44, supported by China’s anti-involution measures targeting price wars in industries like steel production. 

• Fortescue Metals Group rose 2.1% to $18.74
• Rio Tinto gained 1.9% to $115.74
• Mineral Resources added 0.6% to $36.54
• BHP Group fell 0.61% to $42.02 after going ex-dividend at $0.92.

ASX 200 technical analysis

In our ASX 200 report on Tuesday, 2 September, we noted:

'With the relative strength index (RSI) on the weekly chart at its most overbought level since August 2021 and the formation of a loss of momentum type weekly candle last week, we are becoming increasingly cautious about the ASX 200’s upside prospects from here.'

This warning proved timely as the ASX 200 broke through several important support levels yesterday, helping to alleviate the overbought conditions mentioned above.

Looking forward, anticipate the ASX 200’s pullback to extend towards the 8630 - 8600 support band in the coming weeks, which would reflect a neat 5% pullback from the 9054.5 record high. Be aware that if the ASX 200 were to reclaim resistance around 8900 - 8920, it would be an initial indication that the pullback is complete and the uptrend has resumed.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 4 September 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}