Investing.com - On Tuesday, Australian shares opened on a positive note, reflecting the upward trend in Wall Street. This surge was primarily driven by Microsoft Corporation (NASDAQ:MSFT), which spearheaded a significant rally in US mega-cap tech stocks.
The S&P/ASX 200 index, a key benchmark, saw an increase of 0.3%, or 19.4 points, reaching 7,077.8 after the first hour of trading. This uplift was largely attributed to the performance of the materials and energy sectors. Further bolstering sentiment, the Australian dollar also saw a rise, trading around US65.6¢ as the US dollar remained close to an 11-week low.
Energy stocks experienced a positive upturn as crude oil continued its upward trend. This was spurred by increasing speculation that the OPEC+ alliance might take measures to strengthen oil prices. West Texas Intermediate saw a rise of 2.3%, settling above $US77 per barrel. Consequently, Ampol Ltd (ASX:ALD)grew by 0.7%, Santos Ltd (ASX:STO) by 0.9%, and Beach Energy (ASX:BPT) by 1%.
For local investors, the day's agenda includes the latest RBA board meeting minutes, set to be released at 11:30 am AEDT.
Overnight, Wall Street saw the S&P 500 up by 0.9% and the Nasdaq gaining 1.2%, powered by Microsoft's record high following the announcement of Sam Altman's recruitment for a new venture. Altman's appointment comes after his surprising dismissal as CEO of OpenAI, the creator of ChatGPT.
Microsoft's shares soared by 2.1% to $US377.44 after peaking at a record $US378.87. NVIDIA (NASDAQ:NVDA) also rose by 2.3% in anticipation of its upcoming earnings results.
The stock market was further boosted by a successful $US16 billion auction of 20-year US government debt, which was well received by the market and helped lift investor sentiment.
Locally, Technology One Ltd (ASX:TNE) fell 2% despite reporting a 16% increase in after-tax profit and reaching $129.9 million for the 2023 financial year. Its revenue also saw a 19% increase, rising to $441.4 million.
Coles Group Ltd (ASX:COL), the supermarket giant, saw a minor increase of 0.7%. The company's Treasury Group is looking to secure $1.25 billion through seven- and 10-year bonds.
On the other hand, Brickworks Ltd (ASX:BKW) experienced a 2% drop despite announcing an increased final dividend for the 2023 financial year. Several companies, including AGL Energy Ltd (ASX:AGL), Bluescope Steel Ltd (ASX:BSL), Fortescue Metals Group Ltd (ASX:FMG), Monadelphous Group Ltd (ASX:MND), and Perseus Mining Ltd (ASX:PRU), are scheduled to hold their annual general meetings.