Investing.com - The Australian Securities Exchange is predicted to experience a significant drop at the open, after higher than expected CPI data yesterday sapped risk sentiment.
In contrast, tech giants Apple (NASDAQ:AAPL), Amazon, and Tesla (NASDAQ:TSLA) led gains on Wall Street overnight, with Amazon.com Inc (NASDAQ:AMZN) exceeding the $2 trillion mark for the first time. This milestone was reached due to several factors, including Volkswagen (ETR:VOWG_p)'s decision to invest billions into electric vehicle manufacturer Rivian Automotive Inc (NASDAQ:RIVN), in which Amazon holds shares, and FedEx Corporation's (NYSE:FDX) unexpectedly positive profit forecast.
Although the tech sector experienced a rally overnight, Micron Technology Inc (NASDAQ:MU) fell nearly 7.1% in after-hours trading following disappointing sales forecasts.
Despite potential weaknesses in the tech sector, optimism was boosted by the Federal Reserve's announcement that all 31 US banks passed the bank's annual stress test, indicating they are well-positioned to withstand a severe recession and remain above minimum capital requirements.
On the bond markets, Australia 10-year and 2-year rates were at 4.424% and 4.301% respectively.