The Australian sharemarket is set to resume its advance after US investors, emboldened by the prospect of further interest rate cuts from the Federal Reserve, continued to pile back into Wall Street.

Futures for the S&P/ASX 200 Index suggest a robust start to the week for the local bourse, climbing 24 points, or 0.3 per cent, to 8852 and extending Friday’s rally. The gauge has still fallen for three consecutive weeks amid a bout of profit-taking after the August reporting season.

But in the same week that the US Federal Reserve kicked off its first rate cut this year and signalled more easing to come, the world’s most-watched equity benchmark – the S&P 500 Index – topped 6660 on Friday with rate-sensitive technology stocks leading the charge.

Apple lifted its market value above $US3.6 trillion ($5.5 trillion) after the latest iteration of its iPhone went on sale, while Oracle rallied on a report that it is in talks with Meta Platforms for a $US20 billion cloud-computing deal.

“These huge sectoral drivers of market performance can overshadow the macro picture,” said Stephen Miller, an investment strategy adviser to GSFM, referring to the artificial-intelligence-led rally. “But if you look at the economic data, there are elements of resilience to it.”

For local investors, Reserve Bank of Australia governor Michele Bullock is speaking before the House of Representatives on Monday, though she may resist talking about the outlook for interest rates so close to the next rate decision on September 30.

The Australian dollar has dipped below US66¢ after the US dollar made a modest comeback. And on the ASX, the mining sector may get a boost on Monday from a pick-up in the gold price to $US3675.06 an ounce and a rally in iron ore prices above $US106 a tonne in Singapore.

Market highlights

ASX 200 futures are pointing up 24 points or 0.3 per cent to 8852.
All US prices near 5.30pm New York time.

AUD -0.3% to US65.93¢Bitcoin -1.7% to $US115,484On Wall St: Dow +0.4% S&P +0.5% Nasdaq +0.7%VIX -0.25 to 15.45Gold +1.1% to $US3683.30 an ounceBrent oil -1.2% to $US66.61 a barrelIron ore +1.2% to $US106.60 a tonne10-year yield: US 4.13% Australia 4.25%