Australian Sharemarket Expected to Dip on Wall Street Decline

The Australian sharemarket is expected to dip at the open, with futures pointing to a decline of 6 points or 0.1 percent. This follows a flat close on Tuesday for the ASX.

On Wall Street, the S&P 500 fell 0.6 percent and is on track for its third straight modest loss since setting an all-time high on Thursday. The Dow Jones Industrial Average was down 89 points or 0.2 percent as of 1:54 p.m. Eastern time.

The decline in US stocks can be attributed to the fall of AI-related shares, including Micron Technology, which dropped 7.6 percent, and Nvidia, which fell 2.1 percent. These companies have been big winners in the boom around artificial-intelligence technology but are now facing scrutiny due to high interest rates.

The bond market is also playing a significant role in the decline of stocks. The yield on the 10-year US Treasury edged down to 4.71 percent from 4.72 percent late Monday, but remains well above its 3.97 percent level from just before the war with Iran began.