Investors welcomed a surge of optimism, leading to a $120 billion jump in market value across Australian equities.
The ASX 200 index soared by 4.5 per cent, finishing at 7,710 points. The broader All Ordinaries index leapt 4.7 per cent to close at 7,914 points. Despite the impressive performance, the ASX 200 remains 1.7 per cent lower for April and has declined 5.5 per cent since the start of the year.
The rally in Australia followed a dramatic session on Wall Street. The S&P 500 posted a 9.5 per cent increase which was its largest daily gain since October 2008. Australian investors took cues from the positive sentiment, triggering widespread gains across the board.
Not a single stock in the ASX 200 closed in the red, with strong performances in the mining and energy sectors. Industrial and technology stocks also performed well on the day. Buy-now-pay-later company Zip led the charge, surging 20.7 per cent and Mineral Resources climbed 18.1 per cent. Uranium producers Boss Energy and Paladin Energy jumped 17.5 per cent and 17.4 per cent respectively.
Heavyweight stocks also showed strength. BHP gained 5.4 per cent to $36, and Rio Tinto rose 6.4 per cent to $110.59. The big four banks rallied, with ANZ up 3.5 per cent and Westpac rising 4.9 per cent. In contrast, defensive stocks like Telstra, Woolworths, and Coles recorded smaller gains. These smaller gains were a reminder that there is still a lot of caution tone in some corners of the market. Investors may be repositioning portfolios to balance risk and opportunity amid ongoing economic uncertainties.
Meanwhile, the Australian dollar climbed 0.6 per cent to 61.88 US cents. However, analysts warn that the volatile market climate may continue until key international issues, particularly trade and tariff policies, are resolved.
US futures indicated a modest dip ahead of the Wall Street open, suggesting investors are still wary of sudden shifts. Bond markets in the US have also been experiencing intense fluctuations, as yields on 10-year Treasuries spiked to around 4.5 per cent. Analysts highlighted this as a signal of deeper uncertainties, especially as traditional safe-haven moves into US dollars failed to materialise.
While the rally has provided a breath of fresh air, market experts caution that unpredictability remains a key theme, and investors should prepare for ongoing turbulence and sharp reversals in momentum.
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