Australian Shares to Fall Amid Softer US Inflation

Australia's stock market is poised to open lower as Wall Street ended mixed overnight. The Dow Jones edged down, while the S&P 500 and Nasdaq closed higher thanks to strong quarterly results from CoreWeave and other AI infrastructure companies.

CoreWeave surged 19% after beating earnings expectations and increasing its annual capital expenditure forecast to between $35 billion and $39 billion. Data centre operators also rallied, with IREN gaining almost 10% and Applied Digital rising 4.9%. Nebius Group jumped 34% after reporting second-quarter results that exceeded expectations.

The Australian sharemarket is set to open lower despite the softer US inflation rate easing concerns about a Federal Reserve rate hike. The latest inflation report came in line with expectations, with consumer prices rising just 0.1% month-on-month as gasoline prices declined for a second consecutive month and underlying inflation remained subdued.