US Tech Cools While Aussie Markets Rally - Your Weekly KiwiSaver Market Update

United States Markets - Mixed Close After Tech Weakness

Major US indices saw some cooling off from recent highs as momentum in large tech stocks lost steam toward the end of the week. The S&P 500 and Nasdaq both dipped, the Nasdaq more sharply. While the Dow and small-cap Russell 2000 managed modest gains for the week. Overall, the S&P 500 finished slightly lower on the week. Tech and growth names that have propelled gains earlier in the year weighed on performance.

What helped or hurt markets this week?
• Interest rate expectations: Markets have been pricing in continued cuts from the Federal Reserve, which can support risk assets.
• Sector rotation: Investors trimmed some high-growth tech exposures while favouring other areas.

Australian Markets - Third Week of Gains

Australia’s benchmark ASX 200 extended its winning streak, posting a notable third successive weekly rise, its strongest since August. Driven largely by materials stocks (notably gold miners) and banks. Gold’s rally helped lift the broader market, and the Aussie dollar edged higher.

Broader market breadth was positive, with 8 of 11 sectors posting gains on the week.

Economic Backdrop:
• Investors are watching potential moves by the Reserve Bank of Australia (RBA) alongside global monetary conditions.
• Separately, credit agency S&P has issued a negative outlook on the ASX exchange’s risk management practices, though it did not change the current rating.

New Zealand Markets - Steady but Quiet

The NZ share market was relatively steady with only modest moves this week, and the S&P/NZX 50 Index showed slight gains after a brief pullback earlier in the week. Local equities often take cues from global sentiment, and the recent softness in US tech may have dampened momentum.

Market snapshot:
• The NZX 50 registered small positive movement, indicating resilience in local markets despite mixed global signals.

💡 KiwiSaver Insight - How This Week May Have Influenced Your KiwiSaver

This week’s global market movements likely led to small, normal shifts in KiwiSaver balances, depending on your fund type and investment mix.

1️⃣ US Tech Pullback - Mild Impact on Growth Funds

Many Growth and High-Growth funds hold global equities, including US tech. With tech easing back this week, these funds may have seen slightly softer performance.

2️⃣ Australian Strength - Helpful Offset for Diversified Funds

The ASX had a strong week, driven by gold miners and banks. This likely gave a bit of support to funds with Australasian exposure, helping counterbalance the softer US tech results.

3️⃣ NZ Market Stability - Reduced Volatility for Conservative Funds

The steady performance of the NZ market provided a smoother return profile, particularly for Conservative and Balanced funds that hold a higher proportion of local shares.

4️⃣ Currency Movements - Small FX Effects

Fluctuations in the NZ dollar against the USD and AUD may have created minor adjustments to returns in funds with offshore investments.

Disclaimer: This content is for general information only and does not constitute personalised financial advice. Past performance is not a guarantee of future results.