Australian Shares Hit All-Time High

The S&P/ASX 200 Index jumped 0.88% to close at 7,959 on Friday, reaching new record highs as softer-than-expected US inflation data for June cemented bets that the Federal Reserve will start cutting interest rates in September.

Small-cap stocks outperformed in the US, with the Russell 2000 surging 3.6%, although sharp losses in mega-cap technology names such as Nvidia and Tesla masked those gains.

In Australia, investors continued to assess the outlook for Reserve Bank of Australia monetary policy amid expectations that it will lag behind its peers in the global rate-cutting cycle due to persistent domestic inflation.

Nearly all sectors participated in the advance, with notable gains from index heavyweights such as Commonwealth Bank (1.2%), CSL Ltd (1.5%), National Australia Bank (1.8%), Woodside Energy (0.3%) and Wesfarmers (2.3%)..

The benchmark index advanced 1.8% this week for its best weekly performance since early June.