Investing.com - Australian stocks are set to open higher on Wednesday, mirroring Wall Street's gains as traders strengthen their expectations of a shift in the Federal Reserve's interest rate policy come September.
As of 8:50 am AEST, ASX 200 Futures were up by 0.4%.
In the US, the Dow Jones Industrial Average soared by 743 points or 1.9%, closing at a record high of 40,954.48. The S&P 500 Index also experienced a gain, up by 0.6% to 5667.20, while the NASDAQ Composite added 0.2%.
The Russell 2000 Index marked its fifth consecutive day of gains above 1%, making it the longest winning streak since April 2000. The index surged by 3.5%, reaching its highest level since January 2022.
Spot gold also saw an increase, reaching as high as $US2469.66 per ounce, surpassing the previous all-time high set in May.
On the bond markets, the Australia 10-year rate was at 4.269%, while the 2-year yield was at 4.11%. The yield on the United States 10-year note fell by 7 basis points to 4.16% at 4.59 p.m. The likelihood of a rate cut at the Federal Reserve's September 17-18 policy meeting hit 100%, as per CME futures.
Locally, investors will be tuning into New Zealand's quarterly inflation report on Wednesday morning. Last week, market experts heightened their expectations that the country might lower interest rates as early as next month, following an unanticipated early "dovish pivot" from the Reserve Bank of New Zealand when it decided to maintain the current cash rate.