Wall Street Gains on Trade Hopes, ASX Rallies as Key Sectors Climb

Wall Street Edges Up on Trade Momentum

The S&P 500 and Nasdaq each rose 0.3%,while the Dow added 0.1%, lifted by renewed optimism surrounding US-China tradetalks. US Commerce Secretary Howard Lutnick noted progress in negotiations overrare earth exports and chip controls, saying an agreement could be reached “asearly as tonight”.

Despite this, analysts urged caution.Capital Economics highlighted that Chinese markets are driven more by domestic policies than by US tariffs, while expectations for a full rollback of exportr estrictions remain limited. Investors are also bracing for key US inflation data due Wednesday, expected to reflect upward pressure from import costs.

Meanwhile, Citi economists project the US Federal Reserve will hold rates steady through July, before delivering up tofive rate cuts totalling 125 basis points by March 2026.

In corporate news, Taiwan Semi conductor jumped 4% after reporting strong May sales. Apple (NYS: AAPL) shares edged higher following a subdued WWDC event. On the downside, McDonald’s dropped over 1% after adowngrade linked to falling foot traffic and concerns over weight-loss drugs. JM Smucker and Designer Brands both declined after missing earnings expectations.

ASX Rallies Across the Board

Locally, the ASX200 rose 0.83% onbroad-based strength. Materials, Financials, Information Technology, Healthcare, and Utilities all posted gains. Commodities were mixed: gold slipped 1.1% to US$3,317.80 an ounce, Brent crude fell 0.6% to US$66.61 per barrel,and iron ore dipped 0.6% to US$95.62 a tonne.

M&A Activity and Strategy Updates

Johns Lyng Group (ASX: JLG) confirmed a non-binding takeover approach from Pacific Equity Partners. The bid, via a scheme of arrangement, includes scrip considerationfor senior management, including CEO Scott Didier.

Qantas (ASX: QAN) announced it will shut down Jetstar Asia, redirecting 13 aircraft back to Australia and New Zealand. The move comes after rising competition in Southeast Asia and a projected $25 million loss. The shift frees up $500 million forQantas’ broader fleet overhaul.

China and the US have also reportedly agreed in principle to a trade framework following recent talks in Geneva, signalling incremental progress in restoring economic trust.