ASX Edges Higher as Small Caps and Tech Shine Amid Global Market Jitters

Key Highlights:

• S&P/ASX 200 gains 0.61% to close at 8,046, led by technology and energy stocks.
• Small Ordinaries surge 1.45%, outperforming broader indices.
• Volatility stays low despite mixed global signals and US tech uncertainty.
• Gold prices rebound, lifting some miners, but broader commodity markets remain cautious.
   

The Australian sharemarket pushed higher today, brushing off overnight global volatility, as local investors took comfort in strong performances from technology, energy, and small-cap sectors. The S&P/ASX 200 rose 48.9 points, or 0.61%, to close at 8,046 — signaling continued resilience even as US markets showed signs of hesitation.

Small caps led the charge, with the ASX Small Ordinaries Index jumping 1.45% to 3,035, reflecting renewed appetite for growth stocks amid an environment of relatively low volatility. The S&P/ASX 200 VIX Index dipped further to 12.8, reinforcing expectations of a steady market in the short term.

Technology stocks maintained their strong momentum, with the All Technology Index climbing 1.19% to 3,482.6. Gains were led by Fineos Corporation (ASX: FCL), up 5.53%, while the broader sector benefitted from positive sentiment despite choppy global tech headlines.

Energy stocks also had a standout session, climbing 1.57%. Enthusiasm around uranium plays drove big moves, with Mineral Resources (ASX: MIN) rallying 10.56% to $20.10 and Boss Energy (ASX: BOE) up 8.57%, even as Brent crude slipped nearly 2% to US$65.62 per barrel.

The materials sector posted a 0.96% gain, rebounding with copper prices nudging slightly higher. However, gold miners faced mixed fortunes despite a 1.71% rally in spot gold prices to US$3,354.80 an ounce. Northern Star Resources (ASX: NST) slumped 5.32% after issuing a disappointing production downgrade, dragging the ASX All Ordinaries Gold Index 1.51% lower.

Defensive sectors like consumer staples edged 0.06% lower, while discretionary stocks rose just 0.08% — suggesting investors are still carefully balancing between growth and safety.

Across the leaderboard, Energy Resources of Australia (ASX: ERA) soared 33.33%, while Lotus Resources (ASX: LOT) and Deep Yellow (ASX: DYL) posted strong double-digit gains. On the flip side, Pact Group Holdings (ASX: PGH) plunged 18.72%, leading the day’s biggest decliners following a bleak trading update.

The cautious optimism on the ASX came despite a volatile session on Wall Street. US investors ended Monday almost where they started after a chaotic trading day that saw major indices swing between gains of +0.5% and losses of -1.0%. The Dow Jones managed a 0.3% lift, while the S&P 500 eked out a slim 0.1% gain. The Nasdaq dipped 0.1%, reflecting lingering unease around tech stocks.

A report that Chinese giant Huawei is preparing to launch powerful new AI chips rattled Nvidia shares, which fell 2.05%. With Huawei pushing aggressively into semiconductor territory, filling gaps left by US chip restrictions, investor sentiment around US tech giants remained fragile. Other tech majors saw mixed trading ahead of earnings releases this week — Alphabet slipped 0.87%, Microsoft fell 0.18%, while Meta and Apple managed small gains.

Meanwhile, IBM’s pledge to invest US$150 billion in its US operations over the next five years lifted its stock 1.6%, offering a rare bright spot for the FinTech sector.

Over in Europe, the mood was slightly more upbeat. The FTSE 300 rose 0.5%, buoyed by strength in banks and healthcare, while London’s FTSE 100 was largely flat but continued to consolidate its recent gains.

Back home, the Australian dollar traded steadily at 64.30 US cents, reflecting a balanced risk appetite among traders.

As April draws to a close, the ASX appears well-positioned for a strong monthly finish. Despite global headwinds, investors remain selectively bullish — favoring sectors with clear earnings momentum while staying cautious around macro risks. For now, low volatility and resilient sector rotation continue to underpin the market’s upward march.