ASX 200 Rises 0.6% as Nvidia, Salesforce Fuel Tech Rally

The Australian share market closed the week higher as a tech rally sparked by Nvidia and Salesforce results pulled investors back into risk assets. The ASX 200 rose 54.1 points, or 0.6%, to 9092.3, with seven of 11 sectors advancing. For the week the index added 0.4% as the market absorbed the final batch of company results and stronger-than-expected inflation data that pushed rate-cut bets further out.

Technology was the strongest sector, mirroring a 7.5% gain in Nvidia shares overnight after the chip maker beat even the most bullish expectations. Nvidia, which carries an Alpha Score of 76/100 (Strong) on AlphaScala, reported revenue that exceeded analysts' top-end estimates, driven by AI chip demand. Salesforce shares surged 21.6% after artificial intelligence helped deliver one of its best quarters. The tailwind lifted local tech names: Xero jumped 4.8% to A$85.64, WiseTech Global added 2.7% to A$40.61, and NextDC rose 2.1% to A$13.87.

Banks were broadly higher. Commonwealth Bank gained 1.5% to A$157.26, National Australia Bank rose 0.8% to A$38.29, ANZ added 0.74% to A$34.73, and Westpac climbed 0.65% to A$33.90.

Mining stocks were mixed. BHP shares rose 1.4% to A$67.30. BHP's Alpha Score is 75/100 (Strong). Rio Tinto slipped 0.4% to A$178.04, while Fortescue advanced 2.1% to A$18.07. Gold miners were mainly higher. Newmont edged up 0.3% to A$182.80. Newmont holds an Alpha Score of 82/100 (Strong). Energy stocks also rose: Santos gained 0.74% to A$8.12, Woodside added 0.84% to A$32.27.

Real estate was the weakest sector. Stockland fell 2.5% to A$4.31, Mirvac dropped 1.4% to A$1.79.

PEXA shares plunged 17.4% to a record low of A$6.68 after the conveyancing software supplier warned that revenue for the current financial year would be between A$385 million and A$415 million, and that its EBITDA margin would also decline.

Harvey Norman shares fell 1.8% to A$4.42. The company met expectations with a A$528.46 million profit, but investors focused on a weakening sales outlook as consumers grow cautious.

Virgin Australia shares dropped 1.4% to A$2.77 despite beating market expectations with a 13.4% increase in underlying EBIT to A$753 million. The concern was that fuel hedging is rolling off, exposing the airline to aviation fuel price volatility.

Dicker Data shares rose 20.7% to A$15.30 after the technology distributor forecast gross revenue of A$4.3 billion to A$4.4 billion and net operating profit before tax of A$162 million to A$165 million for 2026.

WAM Capital shares lost 18.5% to A$1.23 after it cut its full-year dividend target from 15.5¢ to 8¢ a share, citing an insufficient profit reserve.

The broader themes from the reporting season were mixed. Healthcare stocks performed well on turnaround stories at CSL and Cochlear. Miners benefited from a stronger push into copper by BHP and Rio Tinto, which is already yielding results as spot copper prices rise. Financials lagged as banks reported double-digit declines in mortgage volumes since the government's May capital gains tax changes. Property shares were under pressure from a slowing residential market, and consumer stocks weakened on softer trading trends.

Looking ahead, local inflation and second-quarter GDP numbers are the major economic releases. In the US, earnings season continues with results from Palo Alto Networks, Medtronic, Dell, Broadcom, Hewlett Packard, Brown-Forman, NetApp, Lululemon, and Campbell's. US labour force numbers are due Friday, with the unemployment rate tipped at 4.2%.