Daily Market Update: 29 January 2026

ASX (ASX:XJO) loses steam on ‘hot’ inflation data, WiseTech (ASX:WTC) leads tech selloff, energy rallies on US storms

The local market erased early gains to finish 0.1 per cent lower as ‘hot’ inflation data all but locked in a rate hike next week, according to experts. The ‘market’ is pricing in a 70 per cent chance of a rate hike, after monthly inflation came in at 1 per cent, while annual inflation was 3.8 per cent. Unfortunately, the cost of housing was the biggest driver, up 5.5 per cent, with electricity the largest contributor, something that higher interest rates will do little to reverse. The tech sector felt the brunt of the selloff on forward valuation concerns, with WiseTech (ASX:WTC) falling 3.8 per cent and Next DC (ASX:NXT) down 2.7 per cent. The energy sector was a rare winner, as the likes of Woodside (ASX:WDS) rallied strongly on the back of a storm in the US which disrupted oil production.

Catapult (ASX:CAT) joins founder-led selloff, Droneshield (ASX:DRO) sinks again, ASX (ASX:ASX) down on expense increase

Tracking group Catapult Sports (ASX:CAT) was the latest company to be hit by insider selling, with shares dropping nearly 7 per cent after its CEO confirm he has sold down a significant shareholding during the month. It has been a similar story for market darling Droneshield (ASX:DRO) with shares dropping another 5 per cent, after the founder did little to allay concerns about his reason for selling out of his shareholding. Shares in market operator ASX (ASX:ASX) were slightly lower after the company flagged an increase in expenses in 2026 due to the ongoing issues with it technology upgrades and regulator supervision. Boss Energy (ASX:BOE) gained more than 10 per cent after announcing significant improvements in its cost control at its Honeymoon uranium mine.

S&P500, Nasdaq gains as Fed upgrades economic outlook, ASML stuns with sales growth

The Federal Reserve decided to leave rates on hold overnight, with Chair Powell suggesting the economy was improving enough to warrant supportive positioning without the need for further, aggressive rate cuts.

The S&P500 and Dow Jones gained slightly, while the Nasdaq gained 0.3 per cent as the semiconductor sector came back into focus. Estimates suggest as much as US$505 billion will be spent on capital investments to keep up with the insatiable demand for data centres and AI enablement. Texas Instruments (NYSE:TI) delivered a stronger than expected forecast for the upcoming quarter, with demand for industrial equipment and vehicles surging. But all eyes were on ASML (NASDAQ:ASML) which posted record orders in the fourth quarter, nearly double what analysts had expected, with a significant portion of sales coming from China. Telecoms provider AT&T (NYSE:ATT) reported solid profit growth in the fourth quarter, with subscribers adding more than one service to their plans.