Highlights
- ASX futures signalled a firmer open after US stocks rallied on the outcome of the midterm elections.
- Analysts flagged that divided government in Washington may bring tighter scrutiny of artificial intelligence and data centre spending.
- Technology valuations, including WiseTech Global's, remain sensitive to bond yields, which have eased recently.
Australian share futures are pointing to a strong start, but the overnight rally on Wall Street came with a caveat for technology investors. Analysts flagged that the Democrats' sweep of both chambers of the US Congress could bring closer scrutiny of artificial intelligence, crypto and data centre investment. For local technology names such as WiseTech Global
, the session may be shaped as much by those AI questions as by the broader rally.
Several analysts argued that the bigger market story is not the election itself but the recent sell-off in AI-linked shares. A basket of AI-related stocks had already fallen heavily over recent weeks before the midterm results, and AI-linked shares slid across Asian markets during the previous session.
Mixed signals from the US
Large US technology companies led early gains overnight befo...