ASX 200 Nears Record as Tech Surges on Nvidia Boom; Qantas Falls 6% in Market Split

Key Highlights:

• ASX 200 rises to 9,174.5, approaching fresh record highs
• Tech stocks surge 3.43% following Nvidia-led global rally
• Qantas drops 6.34% after profit momentum stalls
• IDP Education and Ramsay Healthcare lead gains after strong earnings
• Iron ore rebound lifts mining giants including Rio Tinto
  
   

Australia’s share market is once again flirting with history, but the road to record highs is anything but smooth.

By midday, the S&P/ASX 200 had climbed 0.51 percent to 9,174.5 points, putting the benchmark index within striking distance of a fresh closing record. Yet beneath the headline optimism lies a market split between the future and the familiar, where artificial intelligence optimism is lifting technology stocks while legacy heavyweights such as Qantas Airways Ltd struggle to keep altitude.

The surge reflects a powerful global tailwind from US chip giant Nvidia, whose latest earnings reaffirmed the scale of demand tied to artificial intelligence infrastructure. The impact is being felt far beyond Silicon Valley, rippling through markets from Wall Street to Sydney.

Source: MarketIndex 

The Nvidia Effect Reaches Australia

Technology stocks led the charge locally, with the ASX All Technology Index jumping 3.43 percent, far outpacing the broader market.

Companies tied to digital infrastructure and software rallied strongly. Xero Ltd climbed 7.6 percent, while Megaport Ltd rose 9.6 percent and Appen Ltd surged more than 10 percent.

The move mirrors global investor behaviour. Overnight, the Nasdaq rose 1.26 percent and the S&P 500 gained 0.81 percent, as investors doubled down on companies positioned to benefit from AI spending.

The logic is straightforward. Nvidia’s results have become a barometer for global tech investment. When demand for chips used in AI data centres surges, markets assume the entire technology ecosystem will benefit.

That assumption is now lifting Australian companies connected to software, cloud infrastructure and data processing.

Earnings Winners Fuel Momentum

Beyond technology, strong earnings reports drove individual standouts.

IDP Education Ltd surged 14.4 percent to $5.25, making it the top performer on the ASX 200. The international student placement provider benefited from improving global education demand and operational recovery following pandemic disruptions.

Healthcare giant Ramsay Health Care Ltd climbed 11.3 percent to $42.47, reflecting investor confidence in its earnings outlook and ongoing restructuring efforts.

Meanwhile, defence and cybersecurity firm DroneShield Ltd rose nearly 10 percent, continuing a broader rally tied to global defence spending trends.

These moves highlight a clear market preference for companies delivering earnings growth and structural tailwinds.

Qantas Loses Altitude

Not every household name shared the optimism.

Shares in Qantas fell 6.34 percent to $9.97, making it one of the worst performers on the index.

The airline’s latest financial results showed profit growth had stalled, disappointing investors who had grown accustomed to record post-pandemic earnings. Rising operational costs, including fuel and labour, are beginning to weigh on margins.

Qantas had been one of the ASX’s strongest recovery stories after COVID-era travel restrictions ended. Its recent stumble signals the airline industry may be entering a more challenging phase as pent-up travel demand normalises.

The drop also reflects how quickly investor sentiment can shift. Companies that once benefited from reopening momentum are now being judged more strictly on sustainable earnings growth.

Energy and Resources Show Mixed Signals

Elsewhere, the energy sector struggled. Shares in Worley Ltd fell 10 percent, while Yancoal Australia Ltd dropped 9.9 percent following disappointing results and weaker sentiment around energy earnings.

In contrast, mining stocks found support as iron ore prices rose 2.2 percent to US$98.80 per tonne. The rebound followed signals of fresh infrastructure stimulus from China, a key customer for Australian exports.

Iron ore remains a cornerstone of the Australian economy. Even modest price increases can have outsized effects on mining companies and the broader share market.

A Market Divided Between Old and New

The day’s trading highlights a deeper shift underway in financial markets.

Technology companies tied to automation, cloud computing and AI are attracting capital as investors bet on long-term structural growth. Meanwhile, traditional sectors such as airlines and energy face more cyclical challenges tied to costs and economic conditions.

Sector performance reflects this divide clearly:

• Information Technology rose 4.60 percent
• Healthcare gained 1.96 percent
• Materials climbed 1.40 percent
• Industrials fell 1.10 percent
• Energy declined amid earnings weakness
  
   

The divergence is part of a broader global trend. Over the past decade, technology has increasingly driven market returns, replacing traditional industries as the dominant force in equity markets.

Global Tailwinds and Local Confidence

International markets continue to provide support.

The Dow Jones rose 0.63 percent, while Asian markets including Japan’s Nikkei climbed 2.20 percent. The Australian dollar remained stable at around 71.28 US cents, reflecting steady investor confidence.

Market volatility also remains low. The ASX volatility index sits at 11.6, indicating relatively calm conditions and strong risk appetite.

This stability encourages investors to remain invested in equities, particularly growth sectors.

Record Highs Reflect Changing Market Priorities

The ASX’s approach toward record territory reflects more than short-term optimism. It signals a deeper transformation in how markets assign value.

Companies positioned within long-term growth themes such as artificial intelligence, digital infrastructure and healthcare are attracting premium valuations.

At the same time, sectors tied closely to economic cycles face greater scrutiny.

Global technology momentum appears strong enough to keep the ASX within reach of new highs. But the uneven performance across sectors shows that even in a rising market, not every company moves upward together.

The record may be near. The path toward it is anything but uniform.