Australian Shares Set for Positive Open Following Wall Street Records

Australian share markets are projected to open in positive territory on Wednesday, 6 May 2026, following a record-breaking session on Wall Street. As of 8:30 am AEST, ASX 200 futures were up by 38 points, representing an increase of 0.43% to 0.45%. This optimistic outlook for the local market comes as global investors react to a combination of strong corporate earnings, easing energy costs, and a fragile but persistent ceasefire in the Middle East.

Wall Street Reaches New Heights

The lead from international markets is exceptionally strong, with major United States indices closing at fresh all-time highs on Tuesday, 5 May 2026. The S&P 500 climbed 0.8%, or 58.47 points, to finish at 7,259.22. The Nasdaq Composite saw even more significant gains, rising 1% or 258.32 points to close at a record 25,326.13. Smaller-cap stocks also participated in the rally, with the Russell 2000 index increasing by 1.8%, or 49.01 points, to reach 2,845. The Dow Jones Industrial Average also showed resilience during the session as market participants processed a wealth of economic and geopolitical data.

Market analysts at organisations such as the Wells Fargo Investment Institute noted that the broad-based nature of the rally reflects growing confidence in the resilience of the global economy. This sentiment is expected to carry over to the Australian market, where investors often look to Wall Street for direction on risk appetite.

Energy Prices and Geopolitical Tensions

A primary driver of the positive sentiment was a notable decline in global energy prices. Brent crude oil prices fell 4% to settle at $109.87 a barrel on Tuesday. This followed a volatile period where prices had peaked above $115 on Monday, 4 May 2026. The easing of oil prices is seen as a critical factor in reducing inflationary pressures, which have been a major concern for central banks globally.

The decline in oil prices occurred as the market interpreted the US-Iran ceasefire as holding, despite renewed tensions. The ceasefire, initially agreed upon on 8 April 2026 through the mediation of Pakistan, has faced significant tests. On 4 May and 5 May 2026, reports emerged of missile and drone attacks on the United Arab Emirates and commercial vessels in the Strait of Hormuz. While these events initially caused oil prices to jump, US military leaders, including Defense Secretary Pete Hegseth, stated on Tuesday that the ceasefire framework remains in place. This geopolitical situation remains nuanced, as the market's perception of stability diverged from active hostilities on the ground.

Technology Sector Earnings

Investor confidence was further bolstered by better-than-expected first-quarter earnings from major global technology firms. Palantir Technologies Inc. announced its results on 4 May 2026, reporting an earnings per share (EPS) of $0.33, which beat the estimated $0.28. The company’s revenue reached $1.63 billion, exceeding the forecast of $1.54 billion. A key performance metric for the organisation reached 84.7%, reflecting strong operational efficiency. However, despite the earnings beat, Palantir shares fell by 6.9% to 7% during the Tuesday session on Wall Street as investors weighed broader competitive concerns.