ASX Soars 4.7% in Broad-Based Rally as Tariff Fears Ease and Tech Stocks Surge

Key Highlights:

• ASX 200 climbs 348 points to 7,723.2 — its best single-day gain in years
• All 11 sectors in the green, led by Tech (+6.9%) and Materials (+6.02%)
• Trump’s pause on some tariffs boosts investor sentiment globally
• Top gainers include ZIP Co (+17.77%) and Adriatic Metals (+16.47%)
   

The Australian share market delivered a resounding rebound on Wednesday, with the S&P/ASX 200 jumping 4.72% to close at 7,723.2, marking one of the strongest sessions in recent years. The All Ordinaries index added 360 points (+4.76%), and Small Ordinaries surged 5.66%, reflecting renewed investor confidence across the board.

The gains were fueled by global relief over U.S. President Donald Trump’s decision to pause implementation of certain sweeping tariffs, which had sparked fears of a prolonged trade war earlier in the week. A more measured tone from Washington appears to have calmed nerves, with equity markets worldwide responding positively.

Tech-Led Rally and Broad-Based Momentum

Technology stocks led the charge, with the ASX All Technology Index soaring 6.84%, as global tech names rallied on Wall Street overnight. Companies like ZIP Co Ltd (+17.77%), Block Inc (+14.00%), and BrainChip (+13.64%) were among the top individual performers.

Materials (+6.02%), Energy (+5.73%), and Real Estate (+5.81%) also posted impressive gains, buoyed by rising commodity prices and easing geopolitical tensions. Gold traded higher at $3,095/oz, up 0.51%, while copper surged 4.63%, reflecting growing risk appetite among investors.

Investors were particularly encouraged by signs of strength in the resource sector, with Sandfire Resources (+15.64%), Deep Yellow (+15.29%), and Bannerman Energy (+16.21%) delivering double-digit gains.

Trump’s “Blink” Sends Global Markets Higher

Overnight, the S&P 500 surged 9.52%, and the NASDAQ gained 12.16%, with reports indicating that the White House may delay some of its more aggressive tariff proposals to allow room for negotiations. While the U.S. administration has yet to provide a definitive timeline, the tone shift was enough to catalyze a risk-on rally.

Trump’s decision comes after sharp pushback from corporate America and trade partners, as well as concerns about price shocks and supply chain disruptions. Markets now await further clarity, particularly around tariffs on autos, semiconductors, and agricultural goods.

Currency and Commodity Moves

The Australian dollar weakened against major currencies, reflecting broader USD strength and market recalibration. It fell 0.50% against the U.S. dollar to 0.6125, and 0.78% against the Euro to 0.5578.

Meanwhile, in the commodities complex, oil prices remained under pressure. Brent Crude dipped 1.07% to $64.78, and WTI fell 0.87% to $61.81, as investors weighed potential demand slowdowns against geopolitical developments.

VIX Index Shows Stable Sentiment

The S&P/ASX 200 Volatility Index remained in the “normal” range between 15 and 20, suggesting that investor sentiment has stabilized following recent geopolitical uncertainty. Analysts say a sustained rally will depend on whether trade tensions remain contained and economic data supports further gains.

Notable Gainers and Losers

Among the top gainers:

• ZIP Co Ltd surged 17.77% to $1.425
• Adriatic Metals Plc jumped 16.47% to $4.03
• Sandfire Resources Ltd rallied 15.64% to $9.425
   

On the downside:

• Minerals 260 Ltd fell 13.46%
• Tasmea Ltd slipped 6.20%
• Metals X Ltd eased 3.27%
  
   

Outlook: Can the Rally Sustain?

While today’s broad-based surge reflects a release of pent-up optimism, analysts caution that volatility may return if the U.S. fails to clarify its trade stance. Still, with commodities strengthening and tech momentum building, the local market appears well-positioned to ride further upside—provided external shocks remain muted.