Market Wrap / hiking expectations

Strong inflation numbers raised the expectations of an RBA rate hike next week, and the S&P/ASX 200 slightly receded to finish at 8,934 points, down just 0.09% this Wednesday. Trimmed mean inflation was up 3.4% in 2025, above the RBA 2-3% optimal range. The increased likelihood of a rate hike sent the consumer-facing stocks lower, as illustrated by Temple & Webster’s 7.6% drop. Market movements were also influenced by a batch of production reports. Woodside gained 2.5% on beating its quarterly revenue estimates. It comes despite lower production, and the on-going search for a permanent CEO. Heading the other way, Ampol declined by 4.03% on lower sales volumes. In uranium, Boss Energy advanced by 8.84% after it cut its cost guidance.However, the tech sector was a drag on the market, with more profit-taking being seen in Life360 following its quarterly report gains. And the ASX stock was 0.8% lower today, with the bourse operator saying costs from an ASIC inquiry are expected to be at the higher end of guidance. Looking ahead, the Fed will hand down its interest rate decision, with a ‘hold’ expected on a resilient labour market and inflation above target. The institution also faces independence challenges from the Trump administration.