Sydney, Feb 26, 2026, 04:55 AEDT — The market has closed.
- S&P/ASX 200 finished Wednesday at 9,128.30, climbing 1.2% to notch a record close.
- January CPI came in above forecasts. Trimmed-mean inflation edged up to 3.4%, so expectations for a May hike stayed high.
- Woolworths surged 13%, WiseTech tacked on 11%, and miners pushed to a new peak as attention zeroed in on Fortescue’s results.
Australian stocks notched a fresh record close on Wednesday, with the S&P/ASX 200 (.AXJO) gaining 1.2% to finish at 9,128.30. The index briefly traded at 9,130.30 earlier in the day. After a flat session Tuesday, miners surged to all-time highs, Woolworths (WOW.AX) jumped 13% on results, and tech names rallied 5.9%. “The market is focused on earnings today, not CPI,” said Hayden Beamish, portfolio manager at Endeavor Asset Management. 1
Inflation didn’t derail things, though it gave markets pause. January CPI came in at 0.4%, putting annual inflation at 3.8%. The RBA’s trimmed-mean measure — the central bank’s preferred core read — edged up to 3.4%. Bond futures sold off and the Australian dollar caught a bid, with traders bumping up the odds of a Reserve Bank of Australia rate hike in May to roughly 80%, from 76% before the release. “The Reserve Bank’s preferred trimmed mean measure was still too high for its liking,” said Deloitte Access Economics partner Stephen Smith. 2
After the CPI surprise reignited talk of a possible rate hike, RBA Governor Michele Bullock struck a note of caution. She said policy calls are “more difficult now” and pressed for patience, pointing out the economy is near balance and inflation remains high, though not “taking off again”. It was a message that didn’t quite match the fresh hawkish chatter. 3
Woolworths shouldered most of the action on the day. The supermarket chain posted a 16% jump in first-half underlying net profit, hitting A$859 million, and nudged its full-year forecast up to the higher end of its “mid-to-high single digits” growth range as price cuts drew shoppers. “It has been a very promotionally intense period,” CEO Amanda Bardwell told analysts, saying customers are seeking “reliable value”. Eyes will turn to Coles (COL.AX) on Friday, when it reports—a quick pulse check on whether the price battle is moving market share or just putting the squeeze on margins. 4
Shares of WiseTech Global (WTC.AX) shot up 11.1% to A$47.74, after the company announced plans to cut around 2,000 jobs over the next two years as it pushes deeper into artificial intelligence. “The era of manually writing code … is over,” CEO Zubin Appoo said, noting tasks that used to drag on for six or seven months can now wrap in a single day. Global X ETFs strategist Marc Jocum chalked up the stock’s recent softness to governance issues, not underlying business problems, following WiseTech’s reaffirmation of its guidance. 5
Fortescue (FMG.AX) delivered a first-half profit of $1.91 billion, up 23%, after hitting record iron ore shipments and locking in stronger prices. The miner is handing out an interim dividend of 62 Australian cents, amounting to a 65% payout. Fortescue is also looking to sharpen its shipment schedules with AI. “Our products are moving well,” Metals and Operations chief executive Dino Otranto told the results call. 6
It’s the composition that counts: the ASX 200’s top-heavy lean toward banks, miners, and a few large defensives gives it a buffer. Higher borrowing costs hit housing-linked and consumer discretionary stocks harder—those sectors just don’t absorb rate changes as smoothly.
Global leads are edging up, putting markets in position ahead of the next session. Tech stocks have rallied into Nvidia’s earnings, and oil is lingering around a seven-month peak as Iran tensions simmer. That kind of setup can jolt Australia’s tech and energy shares, regardless of the local news flow. 7
The downside is straightforward. Should inflation refuse to budge—especially in areas like rents, energy costs, or paychecks—rate markets won’t let the RBA off the hook, pushing it closer to hiking again. That spells trouble for equity valuations. And for those consumer stocks relying on discounting, winning gets tougher under those pressures.
Right now, Sydney traders are tracking if earnings surprises can stay ahead of rate worries. The spotlight next lands on Coles, with its half-year results due Friday, Feb. 27—seen as a marker for grocery prices and clues on consumer demand.
