Australian stocks gain 1% as tech stocks rally in New York

Investing.com - The S&P/ASX 200 opened 1% higher on Tuesday morning, riding on the coattails of tech gains made on Wall Street overnight. Leading the pack is NVIDIA Corporation (NASDAQ:NVDA), a key player in the Magnificent Seven tech stocks, even as the entire sector experiences a broad-based rally. The digital asset, Bitcoin, also experienced a surge, breaking past the $US47,000 mark for the first time since April 2022.

However, it was not all good news as Boeing Co (NYSE:BA) dipped, reflecting the anticipated fallout from the recent accident involving Alaska Airlines over the weekend. Interestingly, Tesla Inc (NASDAQ:TSLA) climbed despite a Wall Street Journal report highlighting Elon Musk's recreational drug use.

Commodities, on the other hand, had a rocky start to the trading week in New York as Brent crude oil fell by 4% and iron ore prices also softened. Gold also experienced a near 1% decline.

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Nvidia's impressive leap came in the wake of its announcement of three new desktop graphics chips. These chips, equipped with additional components, will enable gamers, designers, and other computer users to leverage AI more effectively on their personal machines without resorting to remote services accessed over the internet.

Apple Inc (NASDAQ:AAPL) also saw its shares rise, making up for some of last week’s losses, following its announcement that its Vision Pro mixed-reality device will be available for sale in the US starting February 2.

The NYSE Fang + Index also rose by 2.3% at 2.24pm in New York, with all seven of the Magnificent Seven tech stocks experiencing at least a 1% rise. Among the "smaller" tech firms, Advanced Micro Devices Inc (NASDAQ:AMD), CrowdStrike Holdings Inc (NASDAQ:CRWD), and Palantir Technologies Inc (NYSE:PLTR) each saw at least a 5% increase, with Zscaler Inc (NASDAQ:ZS), Pinterest Inc (NYSE:PINS), Atlassian Corp Plc (NASDAQ:TEAM), Intel Corporation (NASDAQ:INTC), LYFT Inc (NASDAQ:LYFT), and Block Inc (ASX:SQ2) improving by at least 3%.

Market highlights include ASX futures up by 73 points or 1% to 7505 as of 7.20am AEDT, and the Australian dollar improving by 0.1% to 67.17 US cents.

The yield on the US 10-year note dipped below 4% after the New York Federal Reserve reported that median inflation expectations for the one-year-ahead horizon in December reached the lowest level since January 2021.

Goldman Sachs (NYSE:GS) predicts the first US rate cut in March and a total of five cuts in 2024. As for the inflation data expected later this week, Goldman Sachs estimates increases in December's core CPI and headline CPI due to higher food and energy prices.

Today's agenda includes local retail sales and building approvals for November at 11.30am, and overseas data like Eurozone's November industrial production at 6pm and unemployment rate at 9pm, along with US November consumer credit and trade balance.