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ASX set to slide as Wall Street falters and oil dives

Published July 27, 2026 at 9:02 PM UTC

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Australian shares are expected to open lower on Tuesday, following a turbulent session on Wall Street where technology stocks slumped and crude oil prices extended their sharp decline. Futures trading pointed to a drop of around 0.5% for the benchmark S&P/ASX 200, reversing some of last week's gains. The moves come as global investors reassess the outlook for economic growth, with weaker-than-expected Chinese manufacturing data and ongoing trade tensions weighing on sentiment. On Wall Street, the tech-heavy Nasdaq Composite fell 1.2% as Nvidia tumbled 5%, dragging down the semiconductor sector. The broader S&P 500 ended nearly flat as gains in defensive stocks offset tech losses. Oil prices were the biggest mover, with Brent crude plunging 9% to below $70 a barrel, its lowest in over a year, on fears of a supply glut and fading demand. For Australian investors, the impact will be felt across multiple fronts. Energy stocks like Woodside and Santos are likely to come under pressure from the oil rout, while tech shares such as WiseTech and Xero may follow the Nasdaq lower. On the positive side, lower oil prices could ease inflation and boost consumer spending, which might support the Reserve Bank's case for an interest rate cut later this year. The mixed signals leave the market in a cautious mood. Analysts say the sell-off reflects genuine concerns about global demand, but note that Australian fundamentals remain relatively solid. Investors will watch for any further weakness in overnight trading and for the release of local employment data later this week to gauge the next direction.