Australian shares are poised to climb higher rise as US tech stocks fall sharply, but the Dow Jones index closes at its highest level ever.
However, the Dow closed 0.3 per cent higher , a new closing record – thanks to a boost from energy and materials stocks.
"They tend to be cyclically oriented sectors and tend to benefit during periods when the economies are reopening and expanding," said Terry Sandven, chief equity strategist at US Bank Wealth Management. The tech sell-off accelerated after US Treasury Secretary Janet Yellen suggested, earlier this week, that interest rates might need to rise in an overheating economy.
She later clarified that a near-term interest rate hike was not something she was "predicting or recommending" on Tuesday evening . "Once you have markets hitting the highs we have seen recently, the one thing investors are worried about is rising inflation and what that means for profitability of companies," said Shawn Cruz, senior market strategist at TD Ameritrade.ABC/Reuters