Sydney, February 25, 2026, 18:48 AEDT — Market closed.
- Xero finished the day 5.46% higher at A$75.76, rebounding after touching a 52-week low on Tuesday.
- Tech names pushed the S&P/ASX 200 to a fresh record, shrugging off a stronger-than-expected inflation number.
- Focus turns to what the Reserve Bank might signal on rates as its March decision approaches.
Xero Limited jumped 5.5% on Wednesday, closing at A$75.76 after hitting a 52-week low just the previous day. Shares traded from A$72.82 up to A$76.03 during the session. Still, Morningstar data shows the stock sits roughly 61% under its 12-month peak.
Australian stocks surged, sending the S&P/ASX 200 to its highest-ever finish as tech shares—previously under pressure—drove the advance. MarketIndex reported a 1.18% lift for the main index on the day; information technology names soared roughly 5.9%.
Despite renewed jitters over rates, buyers stepped in. “The market is focused on earnings today, not CPI,” Hayden Beamish, portfolio manager at Endeavor Asset Management, told Reuters during the session. Indo Premier
Consumer prices in Australia climbed 3.8% over the year to January, matching the annual rate seen in December, according to figures released Wednesday by the Australian Bureau of Statistics. “The 3.8 per cent annual CPI inflation to January was unchanged from December,” said Michelle Marquardt, who heads prices statistics at the ABS. Australian Bureau of Statistics
According to Reuters, consumer prices in January climbed 0.4%, topping the median estimate. The trimmed mean inflation rate, a key metric for the central bank, accelerated to 3.4% year-on-year. Stephen Smith, partner at Deloitte Access Economics, remarked, “The Reserve Bank’s preferred trimmed mean measure was still too high for its liking.” Reuters
Xero shares rebounded after finishing at A$71.84 on Tuesday, marking their lowest point in a year. The stock had tumbled sharply from last year’s highs. With Wednesday’s advance, Xero manages to claw just above its recent trough, though it hasn’t recovered much ground.
Investors moved back into tech after recent turbulence, picking up shares of WiseTech Global, Technology One, and NextDC among others.
Growth stocks don’t always hold their bounce for long. Should rate-hike expectations firm up, or if investors pivot from “earnings” toward “valuation,” software names such as Xero might just as swiftly shed their advances as they racked them up.
As the next session approaches, traders are eyeing the durability of the tech rebound and tracking how bond yields and the Australian dollar respond to the inflation shock. Thin liquidity has cropped up on recent down days, heightening swings in both directions.
The Reserve Bank will hand down its next policy decision on March 17. Governor Michele Bullock is on the calendar for remarks March 3, per the central bank. Xero’s looking ahead to its annual report, which lands May 14.
