ASX 200 Ends Five-Day Losing Streak as Global Tech Rally and US-China Talks Lift Sentiment

The S&P/ASX 200 index concluded the trading week on a positive note, advancing 0.48% to 8,681.9 points on Friday, 15 May 2026. This upward movement successfully halted a five-day sequence of declines that had seen the local market lose 0.71% over the preceding sessions. The recovery was largely underpinned by a significant rally on Wall Street and improved investor sentiment following high-level diplomatic discussions between the United States and China. During the morning session, the index had already shown signs of recovery, gaining 32 points, or 0.4% to reach 8,673.

Despite the daily gain, the index remains on track to finish the week approximately 0.8% lower. Market analysts have characterised the current rebound as a fragile relief rally, noting that market breadth remained relatively weak at approximately 40%. The index also continues to trade below its all-time high of 9202.90 points reached in February 2026. The broader market sentiment is currently caught between robust international leads and persistent domestic economic pressures, including a hawkish outlook from the Reserve Bank of Australia (RBA).

Global Technology and Geopolitical Drivers

The positive lead from international markets provided the necessary impetus for the local turnaround. On Wall Street, the S&P 500 daily gain reached 0.77%, closing above the 7,500 mark, while the Dow Jones Industrial Average daily gain of 0.75% saw it reclaim 50,000. The Nasdaq Composite daily gain of 0.88% pushed that index to a new record high. This bullishness was mirrored in the global technology sector, where Nvidia shares saw a daily gain of 4.4% following US approval for H200 chip sales to Chinese firms. Cisco Systems shares also surged, recording a daily gain of 13% following its latest earnings report, despite the organisation announcing plans to cut approximately 4,000 jobs as part of a restructuring programme focused on AI and security.

Geopolitical tensions showed signs of easing as US President Trump and Chinese President Xi Jinping held a summit in Beijing on 14-15 May 2026. The discussions, which addressed trade and regional security, contributed to an improved risk appetite among investors. This diplomatic thaw coincided with Boeing securing a deal for 200 jets from China, though the deal size fell short of some market expectations.

Domestic Technology and Sector Performance

In the local market, the technology sector experienced significant volatility. The ASX 200 Tech Index saw an early trade gain of 3.3%, though it remained down by approximately 3% over the preceding six sessions. Megaport (ASX:MP1) was the standout performer, with its shares recording a daily gain of 27.7%. This surge followed the announcement of significant new contract wins worth $254 million, prompting E&P to increase its target price for the company to $25.08 from $23.58.