Australian shares bounced back on Tuesday, halting a three-session decline as banking and technology stocks spearheaded a market rebound. The S&P/ASX 200 index rose 0.6% to reach 7,976.5, supported by gains in major sectors amid renewed investor confidence.
Bank stocks (AXFJ) recovered with a 0.5% increase following three consecutive sessions of losses driven by concerns over potential interest rate hikes. The "Big Four" banks saw modest gains ranging from 0.6% to 0.8%, contributing to the index's upward momentum.
Technology stocks (AXIJ) surged 1.7%, buoyed by positive cues from Wall Street. WiseTech Global (ASX: WTC) rose 2.8%, while Xero (ASX: XRO) gained 1.5%, reflecting strong investor appetite for growth-oriented assets.
In contrast, energy stocks (AXEJ) faced headwinds, declining by 0.8% amid overnight drops in oil prices. Brent crude futures (LCOc1) slipped 0.11% per barrel, and U.S. West Texas Intermediate crude (CLc1) lost 0.14% per barrel, impacting sentiment in the sector.
Mining stocks (AXMM) edged up 0.3% despite challenges in commodity markets, including a 1% fall in Dalian iron ore futures (DCIOcv1).
However, the day's gains were tempered by notable declines in Lynas Rare Earths (ASX: LYC) and Woodside Petroleum (ASX: ASX:WDS) following their disappointing quarterly updates. Lynas shares fell 2.8% to their lowest point in over three months after reporting a decline in quarterly revenue due to production issues at its Kalgoorlie facility and weaker rare earth prices. Similarly, Woodside slipped 2.4% after announcing an increase in the estimated cost of its Scarborough project to AU$12.5 billion.
Gold stocks (AXGD) managed a 0.4% gain after two consecutive sessions of losses, reflecting marginal movements in bullion prices (XAU=).
Overseas, U.S. equity markets closed higher on Monday, with the Dow Jones Industrial Average (DJI) rising 0.32%, the S&P 500 (SPX) climbing 1.08%, and the Nasdaq (IXIC) gaining 1.58%. However, S&P 500 E-minis futures (EScv1) were down 0.11% on Tuesday amid ongoing market volatility.
In New Zealand, the benchmark S&P/NZX 50 index (NZ50) traded 0.6% higher, mirroring positive sentiment in the broader Australasian region.
Investors remain cautious amidst global economic uncertainties and fluctuating commodity prices. The market outlook hinges on developments in central bank policies, geopolitical tensions, and corporate earnings reports, which will likely influence future trading sessions on the ASX and beyond.