Australian shares appear poised to open higher today, tracking overnight gains on Wall Street, where a strong performance by major tech stocks helped lift investor sentiment. ASX futures rose 46 points, or 0.53%, to 8,605 as of 7:30am AEST, signaling an optimistic start to the trading session. 

 

The US market saw a coordinated upswing across major indices. The Dow Jones Industrial Average rose 0.24%, the S&P 500 advanced 0.38%, and the tech-heavy Nasdaq climbed 0.24%. Central to the rally was Oracle (NYSE:ORCL), which jumped 13% after it revised its annual revenue growth guidance upward. The software company's confidence was underpinned by increased demand for artificial intelligence (AI)-driven cloud solutions. 

The upbeat mood extended to other AI-focused giants, including Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Broadcom (NASDAQ:AVGO), each notching gains exceeding 1%. The rally reaffirmed strong investor interest in technology companies positioned to benefit from the expanding use of AI across industries. 

 

Despite the buoyant tone in US tech stocks, broader market sentiment remains tempered by rising geopolitical tensions. The situation in the Middle East has intensified, with the US government urging its personnel to leave certain areas due to escalating conflict risks. The development prompted caution among global investors. 

Meanwhile, the US dollar weakened to a three-year low following a policy signal from the White House indicating plans to introduce updated tariff terms to trading partners. This move comes as the end of a 90-day trade pause looms, injecting uncertainty into the global trade outlook. 

 

In commodities, Brent crude oil rose 1.2% to US$70.19 per barrel, and US West Texas Intermediate (WTI) climbed 1% to US$68.86 per barrel. Spot gold remained steady at US$3,386 per ounce. Bitcoin edged up 0.2% to US$106,212. 

The Australian dollar gained 0.44%, reaching 65.33 US cents, buoyed in part by the rally in commodities and positive risk sentiment. 

 

At 11:30am AEST, attention will turn to local economic data, as the Australian Bureau of Statistics is set to release overseas arrivals and departures figures for April. Travel and tourism watchers will be looking closely at trends, particularly after May recorded a 4.6% rise in total arrivals compared to the same period last year. 

The convergence of strong tech momentum, geopolitical caution, and upcoming local data sets the stage for a potentially active trading day across the ASX.