Australian share futures are pointing to an opening decline, weighed down by a reversal in US equity markets that has overshadowed gains in the technology sector.
While the Nasdaq Composite recovered as dip buyers returned to support major tech names, the broader weakness across Wall Street indices is expected to drag on sentiment in Sydney.
The divergence in US markets highlights a rotation dynamic, with Morgan Stanley forecasting a continued shift toward hyperscalers.
This institutional positioning is bolstered by corporate developments, including an extension of the chip supply deal between Broadcom and Apple through 2031.
However, the positive sentiment from these tech giants has not been enough to fully insulate the broader market from the pullback.
In contrast to the hyperscaler strength, Microsoft announced plans to cut 3,200 jobs within its Xbox unit, signaling ongoing restructuring pressures within the gaming division.