US Market
On Friday, US stocks rebounded, closing out a volatile week and a challenging month for major indices.
The S&P 500 rose 1.6% to 5,954.50, the Dow Jones Industrial Average gained 1.4% to 43,840.91, and the Nasdaq Composite advanced 1.6% to 18,847.28.
Despite the late-week rally, February was difficult for equities. The Nasdaq fell nearly 4%, marking its worst monthly performance since April 2024, driven largely by a 3.5% drop in the final week of the month.
The S&P 500 declined 1.4% for the month, while the Dow finished down 1.6%, though it managed to rise about 1% over the past week. Technical factors, including index rebalancing and market-on-close order imbalances, helped fuel Friday’s late-session gains.
Australian Market
Australian shares are expected to open higher on Monday, tracking Wall Street’s strong performance. ASX 200 futures indicate a 0.6%, increase, suggesting a recovery from last week’s sell-off, which erased year-to-date gains.
Traders are bracing for a volatile week, with fresh U.S. tariffs set to take effect on Tuesday. The new measures include a 25% levy on imports from Canada and Mexico and a 10% tariff on Chinese goods, escalating trade tensions. Efforts to prevent these tariffs continue, with Mexico proposing reciprocal duties on U.S. imports from China, but traders remain cautious about their potential economic impact.
The tariff announcements have strengthened the US dollar, causing the Australian dollar to briefly dip below US62¢ over the weekend. Meanwhile, iron ore prices dropped 2.3% to US$102 per tonne, amid concerns that increased levies on Chinese steel could reduce demand for Australian iron ore. Bitcoin surged back above US$90,000 after President Donald Trump announced that his administration’s plan to establish a crypto strategic reserve was gaining momentum.
Key Developments to Watch
Investors will closely watch this week’s National People’s Congress in China, where officials may announce fresh stimulus measures to counteract economic slowdowns and trade pressures. Any indication of increased government support for infrastructure or manufacturing could boost commodity markets, particularly for Australian exporters.
Company News
Domino’s Pizza, Newmont, Bendigo and Adelaide Bank, and Regal Partners are set to trade ex-dividend on Monday.
Star Entertainment remains in the spotlight as the casino operator struggles to secure a new financing deal, casting uncertainty over its future.
