AU Morning Wrap: ASX Lifts 0.5% as US Stocks Rally on Hopes Rate Peak Near

US stocks swung higher after the Fed indicated the top of the current rates cycle was near and a soft landing for the economy was achievable.

The US central bank raised its benchmark rate as expected by 25 basis points to a range of 4.5–4.75 per cent. Stocks briefly sold off when the accompanying rate statement reiterated the need for "ongoing increases" and Chair Powell said the bank had "more work to do" to reach its 2 per cent inflation target. Policy was not yet "sufficiently restrictive".

Oil prices fell the most in about a month as government data showed US crude inventories swelled to the highest levels since June 2021.

DroneShield stock went into a trading halt in pre-market open, as the brokers launched a raising worth $9 million to $11 million.

The pair will stand for election at ASX's annual general meeting in October.

Profit for the half year fell to $30.5 million from $40.1 million in the prior corresponding period.

David Plank will join UK-based Greg Knight's team who runs macro, rates and strategy as a fixed income economist.

• Oil plunged to a three-week low after US stockpiles increased for a sixth week, implying weak demand. The Energy Information Administration said US inventories increased by 4.1 million barrels, rising above 450 million barrels for the first time since June 2021.

"Numbers from the EIA showed surprising builds across the board," Tariq Zahir, managing member at Tyche Capital Advisors, told MarketWatch.

Brent crude settled US$2.62 or 3.1 per cent lower at US$82.84 a barrel.

• Iron ore declined for a second session in China after breaking above US$130 a tonne earlier in the week when trade resumed after the Lunar New Year. The most active May ore contract on the Dalian Commodity Exchange dropped 0.7 per cent in daytime trade to 867 yuan (US$128.51) a tonne.

• Gold rallied in post-Fed trade after initially settling lower. Gold for April delivery was lately up US$14.90 or 0.77 per cent at US$1,960.20 an ounce.

Earlier, the yellow metal settled US$2.50 or 0.1 per cent lower at US$1,942.80 an ounce. Prices took off as the greenback and US treasury yields slumped. The NYSE Arca Gold Bugs Index rallied 2.5 per cent.