Calm returned to Wall Street overnight, and tech stocks led US indexes higher following a strong profit report from Palantir Technologies, a darling benefiting from the artificial-intelligence boom.
Billions of dollars have been wiped from the Australian share market as it plunged to its worst loss in four months and the dollar fell to a near five-year low.
Australia is leaning on its strong ties to the United States and a trade surplus to keep out of Donald Trump's firing line as he imposes tariffs on allies.
US stocks ended a volatile session higher overnight as investors digested a stack of key earnings reports, with upbeat comments from Tesla helping to offset a disappointing forecast from Microsoft.
The ASX200 has hit a new high in intraday trading and finished just under its all-time closing record amid optimism the RBA will cut rates at its next meeting.
US stocks ended higher overnight, with Nvidia and other artificial intelligence-linked technology shares recovering from sharp losses the previous day as investors snapped up bargains.
The ASX200 has finished down 0.1 per cent, with double-digit losses for uranium developers as the rise of cheap Chinese AI prompts a rethink of narratives.
The Nasdaq posted its biggest one-day percentage drop since December 18 on overnight as a low-cost Chinese artificial intelligence model prompted a steep selloff in US chipmakers.
The benchmark S&P 500 rose to a record closing high overnight as investors assess a mixed bag of corporate earnings and digest comments from President Donald Trump, including a call for cuts in interest rates and oil prices.
Optimism about the Trump presidency's implications for markets and the economy has driven Australian shares to further gains as the ASX200 rises 0.4 per cent.
Australia and the US maintain a strong economic relationship, the foreign minister says, as Donald Trump retakes office as president and spikes concerns about trade tariffs.
