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Wall Street's cooling impacts ASX 200 with tech shifts
s Wall Street softens and the ASX 200 follows suit, attention turns to the impact of US tech volatility and inflation data on global and local markets.
(AI video summary)
This video was created on 24 September for IG audiences by ausbiz.
US tech concerns and AI trade
The decline in United States (US) markets raises questions about whether the artificial intelligence (AI) trade is overblown. Recent announcements in the US tech sector, such as deals involving Nvidia, OpenAI, Oracle, and Meta, have contributed to market volatility.
Also in focus are China’s directives to halt purchases of specific Nvidia chips, adding uncertainty alongside a potential new rival product emerging in China.
ASX 200 and Australian dollar poised for shifts
The Australia 200 (ASX 200) is taking a breather in line with Wall Street's performance. After a substantial sell-off earlier this month, the index remains steady around 8800 but is expected to dip towards 8600, which would offer a 5% pullback and potentially a buying opportunity around the 200-day moving average.
The Australian dollar remains flat following a peak last week around $0.66. Inflation data from both Australia and the US is anticipated to drive upcoming market shifts.
Oil and gold trends
Crude oil prices face mixed signals, with geopolitical risks and fluctuating demand concerns keeping the market within a range. Meanwhile, gold has experienced a 9% surge, breaking out of a contracting triangle, yet current overbought conditions suggest caution. Gold has shown resilience, aided by technical setups supporting its rise.
Bitcoin and cryptocurrency market trends
Bitcoin, is underperforming compared to assets it typically correlates with, such as risk assets and sometimes gold. After a strong run from early January lows, bitcoin now enters a consolidation phase. It may see a dip towards $105,000 or even $100,000, which could present a promising buying opportunity.
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