Live: ASX likely to open higher, AI-buying frenzy drives Dow to record high

The Australian share market is poised for a cautious start to the new financial year, with futures indicating a slight increase. This follows a strong overnight performance on Wall Street, where the Dow Jones Industrial Average hit a new record high for the second day in a row, propelled by a frenzy of buying in US tech stocks connected to artificial intelligence.

Globally, the AI boom continues to dominate market sentiment. Tech stocks with any AI affiliation saw significant gains, boosting major US indices. The Nasdaq Composite, in particular, experienced a notable surge, reflecting investor confidence in AI-driven innovation.

Closer to home, the Australian government is contemplating a significant shake-up of the accounting industry. In the wake of scandals involving PwC and KPMG, authorities are considering forcing major accounting firms to separate their lucrative consulting services from their core audit functions. This potential regulatory change aims to enhance scrutiny and impose greater penalties on individual firm partners for legal breaches, signaling a move towards increased accountability in the sector.