ASX Edges Higher Despite US Tech Rout, Energy and Materials Lift Local Sentiment

Key Highlights:

• ASX 200 adds 0.09% to close at 8,546.2 as energy and utilities offset tech weakness
• US markets retreat after Trump-Musk clash sends Tesla tumbling 14%
• Volatility remains low; investors eye global macro and sector rotations
• Fortinet’s new AI-powered security suite underscores growing cybersecurity focus

The Australian sharemarket posted modest gains on Friday Morning, shrugging off overnight weakness from Wall Street as resource and utility stocks provided a steady anchor. The S&P/ASX 200 rose 7.3 points, or 0.09%, to close at 8,546.2, buoyed by broad gains in energy (+0.57%), materials (+0.45%), and utilities (+0.72%), which helped offset pressure on the tech and real estate sectors.

This came despite a negative lead from US equities market, which fell sharply on Thursday following a dramatic escalation in tensions between President Donald Trump and Tesla CEO Elon Musk.

Wall Street Shaken by Trump-Musk Fallout

US markets ended lower overnight, rattled by political noise and sector-specific shocks. The Dow Jones Industrial Average dropped 108 points (-0.25%), while the S&P 500 fell 0.53%, and the Nasdaq Composite slumped 0.83%.

The biggest headline of the session came from Tesla’s 14% plunge, sparked by a public clash between Trump and Musk. Trump threatened to strip Elon Musk’s companies of government subsidies, calling it the “easiest way to save billions” as his administration pushes its budget through Congress. The fallout overshadowed an otherwise positive update, where Trump confirmed a call with Chinese President Xi Jinping, stating the conversation ended on “a very positive conclusion for both countries.”

While the US-China thaw offered a glimmer of macro hope, investors were more focused on the sudden risk premium reattached to tech stocks, particularly those tied to federal spending.

ASX Sector Snapshot: A Rotation into Defensives

Back in Australia, market breadth was mixed with six of the 11 sectors finishing higher. The All Ordinaries Index edged up 0.04% to 8,771.7, while the Small Ordinaries dipped 0.45%, reflecting ongoing weakness in speculative small caps and technology.

Information technology (-0.38%) and real estate (-0.43%) were among the worst-performing sectors. Notably, the ASX All Tech Index slipped to 4,024.4, with investors digesting both global tech sentiment and rising local valuations.

On the upside, Zimplats (+9.14%), Antipa Minerals (+7.46%), and Tyro Payments (+6.10%) led the gainers, with sentiment rotating into mining and fintech names. Meanwhile, Pilbara Minerals (-6.85%), Ora Banda Mining (-9.38%), and Berkeley Energia (-9.76%) were among the day’s biggest laggards, highlighting the continued volatility in mid-tier mining stocks.

Investor Sentiment: Calm, But Watchful

The ASX Volatility Index (VIX) sits at 10.5, firmly in the “low” range, indicating continued investor confidence despite macro uncertainty. Currency markets remained stable, with the Australian dollar buying US$0.649, supported by firm commodity prices.

Gold rose 0.6% to US$3,397/oz, while Brent crude slipped 1.11% to US$64.90/bbl. Copper gained 1.39%, offering a boost to mining equities and resource-sensitive names.

Final Word

While Wall Street reels from political theatrics and tech shocks, the ASX remains on solid ground—at least for now. Defensive sectors are taking the lead, commodities are supportive, and volatility remains low. With global AI and cybersecurity developments like Fortinet’s making headlines, investors will likely continue favoring quality, profitability, and clarity amid broader uncertainty.