Australian shares climbed across the board on Tuesday, buoyed by a fresh record for Commonwealth Bank and broader gains on Wall Street.

The benchmark S&P/ASX 200 Index rebounded 1.4 per cent, or 105.1 points, to 7838.8 in its biggest one-day gain since mid-May, inching the index within 72 points from a record high of 7910.5. The All Ordinaries advanced 1.3 per cent.

“Today is a small but welcomed win for a market that has been treated to a lot of choppy price action of late, and the session does offer some belief that we can push back into the highs of 7908/10,” said Chris Weston, head of research at online broker Pepperstone.

All 11 sectors finished in the green, led by energy stocks on stronger oil prices. Woodside had its best day since March, rallying 3.7 per cent to $27.96. Santos gained 1.7 per cent to $7.63 and Origin rallied 1.1 per cent to $10.78.

Banks, Mining

Oil prices extended their push higher on expectations of strong US demand over summer. Brent crude popped to an intraday top of $US86.23, the highest in two months. It is up 5.3 per cent this month.

The big four banks also climbed, continuing to defy brokers who have been advising investors to sell the shares on valuation grounds.

Shares of Commonwealth Bank hit an all-time high of $128.68. It closed up 1.4 per cent at $128.63, bringing its gain this year to 13 per cent. National Australia Bank also had a good day, rallying 2 per cent to $36.69, having hit a nine-year peak of $36.72.

The materials sector also buoyed the market, in line with a rebound in the iron ore price. Mining giant BHP advanced 2.1 per cent to $43.32, Rio Tinto lifted 2.1 per cent to $121.45 and Fortescue climbed 1.9 per cent to $21.67.

In corporate news, Paladin Energy dropped 5.1 per cent to $12.56 on news of its planned takeover of Toronto-listed Fission Uranium.

KFC store operator Collins Foods also took centre stage following a record revenue and a six-fold jump in net profit in 2024. Its shares soared 7.3 per cent to $10.

And speciality dairy company Synlait Milk tumbled 10.2 per cent to 26.6¢ after warning it could tip into insolvency if shareholders rejected a critical $NZ130 million ($120 million) loan approval.

On Wall Street, the Dow rallied 0.7 per cent overnight, buoyed by gains in the financial, real estate and utilities sectors, while a sell-off in Nvidia continued to weigh on the S&P 500 and the Nasdaq as more investors cashed out after its stunning year-to-date surge.

Nvidia has tumbled 13 per cent in three sessions, ending its brief stint as the world’s most valuable company.

“Nvidia is expensive on many valuation methodologies,” said George Boubouras, head of research at K2 Asset Management who owns the stock.
“However, the very strong quarterly earnings momentum is anticipated to continue into 2025.”