ASX 200 May Face Reversal After 4.5% Rally Amid Nasdaq Crash Jitters
Key Highlights:
The S&P/ASX 200 index finished trading on 10 April 2025 with a powerful 4.54% rally, closing at 7,709.60. The index surged 334.60 points, driven by a region-wide wave of investor optimism and momentum from tech and resource stocks.
But just hours later, the tone changed dramatically.
The Nasdaq Composite fell by 737.66 points (-4.31%) in a global tech sell-off triggered by hot inflation data and rising U.S. bond yields. With Wall Street showing signs of deep stress, Australia’s share market may face turbulence in its next session.
ASX 200 Snapshot – 10 April 2025
| Metric | Value |
|---|---|
| Closing Value | 7,709.60 |
| Previous Close | 7,375.00 |
| Daily Change | +334.60 (+4.54%) |
| Day’s High | 7,842.90 |
| Day’s Low | 7,375.00 |
| 52-Week High | 8,615.20 |
| 52-Week Low | 7,169.20 |
Global Cues Shift Bearish After Nasdaq Collapse
- Nasdaq Composite plunged 737 points, weighing on sentiment for tech and growth stocks globally.
- Dow Jones fell over 1,000 points, further stoking fears of risk-off mode.
- The market reacted negatively to U.S. inflation data, which raised the likelihood of more Fed rate hikes.
This will likely weigh on Australian equities, especially given the ASX 200’s strong rally on April 10 that may now invite profit booking.
What to Expect from ASX 200 on 11 April
⚠️ Key Prediction:
Expect a soft-to-negative open, with the index likely to correct 0.75% to 1.5% in early trade before stabilizing.
Sectors at Risk
- Tech Stocks
ASX tech shares like Xero, WiseTech Global, and Altium may underperform in response to Nasdaq’s crash. - Mining & Energy
Commodities remain firm, but a global growth scare could lead to minor pullbacks in BHP, Rio Tinto, and Fortescue Metals. - Financials & Banks
Major banks like CBA, NAB, and ANZ may hold up better, unless global bond yields rise sharply again.
Technical Outlook
| Level Type | Value |
|---|---|
| Immediate Resistance | 7,750 |
| Resistance Zone | 7,800–7,850 |
| Support 1 | 7,600 |
| Support 2 | 7,500 |
| Trendline Support | 7,420 |
If the ASX 200 drops below 7,600, expect consolidation near the 7,500–7,550 zone. A recovery above 7,750 may confirm a continuation of the bullish trend.
Expert Commentary
“The ASX was riding a high after global optimism, but Nasdaq’s overnight bloodbath can’t be ignored. Traders will likely reduce risk in the near term,” said Nathan McKenzie, Equity Strategist at Perth Securities.
“The broader Australian market is still supported by mining and dividends, but tech exposure will need to be reassessed,” noted Fiona Walsh, Market Analyst at Sydney Markets Weekly.
ASX May Cool Off Amid Wall Street Storm
The ASX 200’s sharp rise on April 10 could run into headwinds on April 11 as investors react to the Nasdaq’s deep correction and hawkish U.S. macro data. While Australia’s fundamentals remain stable, short-term global risk sentiment could dictate the pace.
Watch out for a pullback led by tech stocks, with the broader index expected to remain volatile throughout the session.
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