Home / Business and Economy / ASX Surges Past 7,200 on US Fed Rate Hike News
ASX Surges Past 7,200 on US Fed Rate Hike News
25 Mar
Summary
- ASX 200 index gained 1.27 percent, reaching 7,266.50 points.
- Australian unemployment rate fell to 4.0 percent in February.
- US Fed raised interest rates to combat high inflation rates.
The Australian stock market experienced a sharp upturn on Thursday, extending previous day's gains and pushing the benchmark S&P/ASX 200 index close to the 7,300 mark. The market's ascent was fueled by positive overnight sentiment from Wall Street, which reacted to the US Federal Reserve's decision to increase its benchmark short-term interest rate in an effort to combat inflation. Materials, financial, and technology sectors were notable outperformers.
Adding to the positive outlook, Australia's Bureau of Statistics reported that the nation's unemployment rate decreased to a seasonally adjusted 4.0 percent in February, falling below expectations. The economy also saw a substantial job creation of 77,400 positions last month, significantly exceeding forecasts. This strong economic performance contributed to the broader market's upward trajectory.
Major Australian companies across various sectors reported significant gains. Mining giants like BHP Group and Rio Tinto saw increases, while tech firms such as Appen and WiseTech Global surged by nearly 6 percent each, with Block experiencing an even more substantial rise. The banking sector also showed positive movement, with major banks reporting gains. Oil stocks exhibited mixed performance, and gold miners were generally lower.
Globally, US markets saw considerable volatility but ultimately closed higher, with the Dow, Nasdaq, and S&P 500 all posting solid gains. European markets also experienced substantial rallies. Meanwhile, crude oil prices saw a decline for the third consecutive session amidst a surprise increase in US crude inventories and hopes for progress in Russia-Ukraine peace talks.
