Investing.com - Australian stocks are set for an uptick on Wednesday, drawing inspiration from a buoyant Wall Street where US stocks rose and bond yields fell. This shift in the market landscape comes in the wake of Federal Reserve Chairman Jerome Powell's indication that the disinflationary trajectory remains steady, hinting at potential rate cuts later in the year.
ASX 200 Futures saw a 0.3% decrease by 9:25 am AEST. This comes as the S&P 500 in the US reached its 32nd record high for the year, closing above the 5500 mark for the first time at 5509.01, a 0.6% increase.
Among top performers, Tesla Inc (NASDAQ:TSLA) saw an impressive 10.2% surge after its quarterly deliveries exceeded expectations. Apple Inc (NASDAQ:AAPL) also experienced a growth spurt with a 1.6% rise. Meanwhile, NVIDIA Corporation (NASDAQ:NVDA) fell by 1.3%.
During the European Central Bank's policy meeting in Portugal, Chairman Powell commented on the US economy's significant progress towards the Fed's 2% inflation target. He further noted that recent data from April and May suggest a return to a disinflationary path, a statement that market participants interpreted as a possible shift towards rate cuts.
On the bond markets, Australia 10-Year and 2-year rates were at 4.449% and 4.251%, respectively.