The Australian sharemarket continued its strong start to 2026, reaching a new record high for the second consecutive day on . The S&P/ASX 200 closed up 47 points, or 0.5 percent, at 9175.3, building on Wednesday’s record close and putting the index on track for its strongest monthly gain since April, rising approximately 3.5 percent for February.
The rally was underpinned by a strong corporate earnings season, particularly from heavyweight mining and banking stocks, according to market analyst Tony Sycamore. He suggested the market could continue to climb, “towards 9400 to 9500 in the months ahead,” if it holds above the 9120 level.
Technology stocks led the advance, boosted by positive news from US chipmaker Nvidia, which posted record quarterly revenue after the US market close. WiseTech Global rose 2.6 percent to $49 and TechnologyOne gained 6 percent.
However, the gains were tempered by a significant decline in Qantas shares, which fell 9 percent following the release of its first-half profit results. The airline reported a flat profit, disappointing investors. The results came as the Senate inquiry into the fatal Optus Triple Zero outage continued in Canberra, revealing allegations of a “lack of care” culture within the telecommunications company.
Elsewhere in the market, DroneShield experienced a substantial surge, securing a $21 million contract. BHP closed at a fresh high, while Cettire shares sank by 25 percent.
The positive momentum on the ASX mirrored gains in global markets. Wall Street closed higher, with the S&P 500 up 0.8 percent, the Dow Jones up 0.6 percent, and the Nasdaq up 1.4 percent. European markets also saw gains, with the Dax up 0.8 percent, the FTSE up 1.2 percent, and the Eurostoxx 50 up 1.4 percent. Asian markets were mixed, with the Nikkei up 0.3 percent, while the Hang Seng and Shanghai Composite both fell, down 0.4 and 0.5 percent respectively.
Commodity prices also saw modest increases. Spot gold rose 0.4 percent to $US5,193 per ounce, and Brent crude increased 0.3 percent to $US71.06 per barrel. Iron ore prices continued their upward trend, rising 2.2 percent on Wednesday to $US98.80 per tonne. Bitcoin, however, experienced a slight decline, falling 0.9 percent to $US68,034.
The Australian dollar remained relatively stable, trading flat at 71.24 US cents.
Despite the overall positive sentiment, concerns about potential risks to the market remain. Market commentary highlighted the easing of turmoil driven by concerns over the impact of artificial intelligence, suggesting that investor confidence had been restored by Nvidia’s strong performance. However, the possibility of a bubble forming in the market was also discussed, with some analysts cautioning against excessive optimism.
Ramsay Health Care also saw significant gains, contributing to the ASX’s overall positive performance. The company’s strong results were a key driver of the market’s upward momentum.
Looking ahead, market participants are closely watching for potential economic indicators and policy decisions that could influence market direction. The Reserve Bank of Australia’s (RBA) monetary policy decisions are of particular interest, with some analysts suggesting a rate rise in March is unlikely, but May remains a possibility.
The data centre construction sector is also being monitored, with reports indicating a slowdown in activity, although not a significant one. This trend could have implications for the technology and infrastructure sectors.
The market’s continued strength reflects a broader positive outlook for the Australian economy, driven by strong corporate earnings, supportive global market conditions, and a stable macroeconomic environment. However, investors remain vigilant, monitoring potential risks and uncertainties that could impact market performance in the coming months.
