Australian shares are set to open higher following August’s US consumer price index data, which suggests a more gradual pace of interest rate cuts by the Federal Reserve.
ASX 200 futures were up 50 points, or 0.6%, around 7am AEST.
The Australian dollar increased by 0.3% to US66.75¢, while government bond yields retreated.
US equities experienced a strong rally overnight, buoyed by significant gains in the technology sector.
Nvidia’s stock surged 8% after CEO Jensen Huang indicated that the company is struggling to meet demand expectations, alleviating fears that the AI sector's momentum might be waning.
The news benefited other tech stocks, including Arm Holdings, Super Micro, and Broadcom, with the Philadelphia semiconductor index climbing 4.9% and recovering from an earlier slump.
Shares of BHP and Rio Tinto, listed in the US, both saw increases of more than 2%. Additionally, Albemarle, a major global lithium miner, soared 13.6%.
US inflation data revealed that the core consumer price index, which excludes food and energy, rose 0.3% in August from July, the largest increase in four months, and was up 3.2% year-over-year.
Oil prices rebounded due to concerns over Hurricane Francine impacting the US Gulf of Mexico.
In the bond markets, the 10-year and 2-year rates were at 3.877% and 3.593%, respectively.
