ASX opens higher as tech shares rebound; US-Iran talks set to resume

The Australian sharemarket opened in positive territory on June 29, 2026, driven largely by a strong rebound in technology stocks. The S&P/ASX 200 index climbed 41.2 points, or 0.5 percent, to 8805.4, with eight of the 11 major industry sectors showing gains. This marked a recovery following sharp declines seen earlier in the week, particularly on Friday, when many technology firms experienced heavy selling pressure. The resilience of the tech sector reflected ongoing investor confidence despite broader concerns about the sustainability of rapid price growth in AI-related companies.

The positive movement in the market coincided with signs of de-escalation between the United States and Iran. According to reports from Axios, both nations had agreed to suspend military strikes and convene in Qatar to continue peace talks. This decision came after a series of retaliatory attacks that began on Thursday (U.S. time) and escalated throughout the weekend. The U.S. and Iranian officials reportedly reached this agreement through diplomatic channels, signaling a temporary pause in hostilities and providing relief to markets that had been rattled by the potential for further conflict.

In addition to the geopolitical developments, oil prices showed initial strength in early trade. Brent crude, the global benchmark, rose 0.6 percent to $72.39 per barrel, while U.S. crude gained 1 percent to reach $69.88. These price increases followed a period of volatility linked to the ongoing tensions between the U.S. and Iran, which had previously caused fluctuations in energy markets. However, the performance of Australian energy stocks remained mixed, with Woodside Energy slightly declining and Santos experiencing a modest gain. Refineries such as Ampol and Viva Energy recorded small but notable increases, suggesting some stability in downstream energy operations.

Among the larger mining companies, BHP and Fortescue both saw gains, though the sector as a whole remained uneven. BHP rose 0.7 percent, while Fortescue advanced 0.5 percent. In contrast, Rio Tinto faced a slight decline of 0.4 percent. Gold miners, however, showed stronger performance, with Northern Star increasing 0.9 percent and Evolution Mining jumping 2.5 percent. This divergence highlights the varied dynamics within the resource sector, influenced by both macroeconomic factors and company-specific developments.

Financial institutions also displayed a mixed response. Commonwealth Bank posted a modest increase of 0.4 percent, whereas National Australia Bank and Westpac each declined by 0.1 percent. ANZ Bank saw a more pronounced drop of 0.4 percent, indicating varying levels of optimism among financial institutions regarding economic outlooks and regulatory environments.

The technology sector's resurgence was particularly notable, with several firms posting substantial gains. WiseTech and Xero both surged 5.5 percent, while Technology One climbed 3 percent and NEXTDC added 1.1 percent. These moves underscored the continued appeal of technology stocks, even amid broader concerns about valuations and profitability. Meanwhile, retailer Accent Group saw a rise of 2.1 percent as it rejected a takeover bid from Frasers Group, arguing that the offer was "materially inadequate." This action highlighted the strategic importance of maintaining independence in the retail sector amidst competitive pressures.

The Australian dollar traded at 68.93 cents against the U.S. dollar, reflecting ongoing interest in the country's assets despite global uncertainties. On the U.S. side, the stock market showed a similar pattern of cautious optimism. While most indices closed near flat, the S&P 500 managed to avoid deeper losses, ending the week with minimal declines. Health care stocks emerged as a bright spot, bolstered by favorable regulatory decisions from the European Medicines Agency. Eli Lilly, for instance, saw a 7.1 percent increase, contributing to a broader trend of gains across the healthcare sector.

However, the momentum in the U.S. market was tempered by continued challenges in the artificial intelligence space. AI stocks, which had dominated headlines and investment flows for much of the year, faced renewed scrutiny due to fears that their profit margins might struggle to match their sky-high valuations. Micron Technology, a major player in computer memory production, dropped 6.7 percent, marking one of the steepest declines in the market. This downturn was attributed to growing concerns over the long-term viability of AI-driven demand, especially after Apple announced plans to increase laptop and device prices to offset rising memory costs. Such developments have raised questions about whether the current enthusiasm for AI technologies will translate into sustainable earnings growth.