ASX set for higher open despite Wall Street tech sell-off; inflation data awaited

The Australian share market is poised for a slightly higher opening, with ASX futures indicating a 0.4% rise, even as Wall Street experienced a notable sell-off in technology, AI, and semiconductor stocks. This resilience in the Australian market is partly attributed to its composition, which is dominated by banks and miners rather than large tech companies.

Investors globally are showing increased concern over the rapid rise in debt-funded AI spending, especially following a more hawkish stance from the US Federal Reserve, which signals a potential interest rate hike by the end of the year. Overnight, the Dow Jones index dipped 0.1%, the S&P 500 fell 1.4%, and the tech-heavy Nasdaq Composite saw a steeper decline of 2.2%.

Locally, the release of Australia's May inflation data is a key event. The figures are expected to be significantly impacted by sharp decreases in petrol and diesel prices. This data will provide crucial insights into the current inflationary pressures within the Australian economy.

Meanwhile, consumers across various Australian states, including Queensland, New South Wales, and South Australia, are reporting confusion regarding electricity bills. Many have received notices of upcoming price increases from their energy providers, which appear contradictory given that the default regulated energy offer has fallen in several markets. Some households are facing hikes to their daily supply charges exceeding 60%, leading to frustration over what they describe as a confusing and contradictory market.