ASX set to jump as Wall Street rebounds; OPEC agrees to oil increase

Stocks on Wall Street are clawing back some of their recent losses in afternoon trading on Thursday, despite ongoing wariness among investors about stubbornly high inflation and rising interest rates.

The S&P 500 was up 1.4 per cent in late trade, with all but two of the benchmark index’s 11 sectors moving higher. The Dow Jones Industrial Average was up 292 points, or 0.9 per cent while the Nasdaq rose 2.4 per cent. The Australian sharemarket is set to bounce higher, with futures vat 4.56am AEST pointing to a rise of 61 points, or 0.9 per cent, at the open.

Technology stocks, whose lofty values tend to give the broader market a harder push higher or lower, accounted for a big share of the rally after shaking off an early stumble. Chipmaker Nvidia jumped 6.8 per cent and software maker Adobe rose 5.3 per cent.

Communications stocks, companies that rely on direct consumer spending and some big industrial firms gained ground. Facebook parent Meta Platforms rose 6 per cent, Expedia Group added 6.1 per cent and Boeing climbed 7.1 per cent.

Small company stocks rose, signalling confidence about economic growth. The Russell 2000 gained 2.1 per cent.

Bond yields were relatively stable. The yield on the 10-year Treasury, which helps set interest rates on mortgages and other loans, fell to 2.91 per cent from 2.93 per cent from late Wednesday.

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Utilities and energy stocks fell. Alliant Energy dropped 1.8 per cent and Chevron was down 0.9 per cent

The pullback in energy stocks came as US crude oil prices rose 1.4 per cent, despite the OPEC oil cartel and allied producing countries including Russia said they will raise production by 648,000 barrels per day in July and August.