Australian Shares Poised to Fall as Fed Rate Hike Bets Rise

The Australian share market is expected to open lower on Monday after Wall Street fell on Friday. This came as investors became more cautious following Federal Reserve chair Kevin Warsh's comments about the central bank's focus on curbing inflation.

Warsh reiterated that interest rates are the Fed's 'predominant tool' for achieving its mandate, but stopped short of signalling support for a rate hike at the September meeting. Despite this, interest rate futures now price in around a 58% chance of a rate increase, up from 35% on Thursday.

Nvidia and Marvell Technology were among the biggest losers on Friday, with Nvidia falling 4.6% after missing revenue expectations. However, most other megacap stocks advanced, with Alphabet and Apple rising 1.7% and 1.6%, respectively.