US stocks moved higher, with the Australian sharemarket expected to take a positive lead from Wall Street. The stronger tone came even as investors kept a close watch on renewed conflict in the Middle East, which added another layer of uncertainty to the market outlook.
A major driver was Microsoft, whose shares surged 15.5% after the company projected sales and cloud growth above expectations. That strong reaction helped lift broader sentiment, especially in technology, and gave investors a reason to focus on earnings strength rather than geopolitical risks alone.
At the same time, bond markets signaled continuing pressure on borrowing costs. The yield on the 30-year US Treasury reached 5.2444%, its highest level since mid-2007, highlighting how expectations around rates and inflation remain central to trading.
The result was a market session shaped by competing forces: optimism around big-tech growth, concern over higher long-term yields, and caution tied to developments in the Middle East. With Wall Street finishing firmer, the ASX 200 was set to open with gains, though the mix of risks suggested investors were unlikely to become complacent.
