Australian Market Expected to Fall as US Stocks Recover

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Australian Stock Market,US Stock Market,Federal Reserve

The Australian share market is predicted to open lower, following a stabilization of US stocks after a sharp decline. The ASX is anticipated to follow a soft trend after reaching a two-year low on Thursday, mirroring the global market's reaction to the US Federal Reserve's prediction of fewer rate cuts in 2025. However, US markets rebounded on Friday with the S&P 500, Dow Jones, and Nasdaq all showing modest gains.

The Australian share market is expected to edge lower on opening after US stocks stabilised following one of their worst days of the year.

Wall Street loves lower interest rates because they give the economy a boost and goose prices for investments, but they can also provide fuel for inflation.Indexes are still near their records, and the S&P 500 is still on track for one of its best years of the millennium. Wednesday’s drop just took some of the enthusiasm out of the market, which critics had already been warning was overly buoyant and would need everything to go correctly for it to justify its high prices.

Darden Restaurants, the company behind Olive Garden and other chains, helped lift the market after leaping 14.9 per cent. It delivered profit for the latest quarter that edged past analysts’ expectations. The operator of LongHorn Steakhouses also gave a forecast for revenue for this fiscal year that topped analysts’.

In the bond market, yields were mixed a day after shooting higher on expectations that the Fed would deliver fewer cuts to rates in 2025. Reports on the US economy came in mixed. The yield on the 10-year Treasury rose to 4.59 per cent from 4.52 per cent late Wednesday and from less than 4.20 per cent earlier this month.

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