Index Update: The S&P/ASX 200 index closed Friday's session higher, adding 87.00 points, or 1.00%, to finish at 8,806.70. The close marked a new 20-day high for the index. It has risen 1.03% over the past five days and is up 1.06% year to date.

Six of the 11 sectors ended in positive territory. Information Technology was the best performer, rising 5.62% and rebounding from its recent decline, though the sector is still down 1.28% over the past five days. Materials followed with a 3.18% gain, then Health Care at 2.49% and Consumer Discretionary at 1.07%. Industrials and Utilities added 0.89% and 0.72%, respectively.

Consumer Staples (down 0.53%), Financial (down 0.52%), A-REIT (down 0.28%) and Energy (down 0.26%) were among the sectors that declined.

Macro Update: Federal Reserve Chairman Kevin Warsh voiced optimism about US economic strength on Friday in Bangkok. He did not signal the direction of the Fed’s October policy decision.

According to multiple reports, Warsh said he was surprised by how well global economies have been holding up amid recent geopolitical shocks, despite tighter Monetary Policy to fight inflation.

He further noted that after meetings with central bankers over the past two days, it was hard to take part in those discussions without hearing the same account of the surge in prices from his counterparts. US data showed Inflation rising faster than expected.

Top Market Movers: Weebit Nano Ltd (ASX:WBT) led the gainers, rising 17.07% or AUD0.42 to AUD2.88, followed by Sunrise Energy Metals Limited (ASX:SRL), up 12.76% or AUD1.78 to AUD15.73, and Electro Optic Systems Holdings Limited (ASX:EOS), which gained 10.07% or AUD0.86 to AUD9.40. On the decliners’ list, Cleanaway Waste Management Limited (ASX:CWY) fell 6.08% or AUD0.16 to AUD2.47, Generation Development Group Limited (ASX:GDG) dropped 4.78% or AUD0.15 to AUD2.99, and Viva Energy Group Limited (ASX:VEA) lost 3.13% or AUD0.10 to AUD3.10.

Commodity Update: The US dollar retreated from a near 18-month high on Friday as gains in the US Bond Market offset hotter-than-expected producer inflation data. Gold rose 0.50% to USD 4,194.45, while silver gained 1.17% to USD 57.83 and copper advanced 1.10% to USD 14,452.70. Brent Crude oil declined 0.39% to USD 105.51 as markets assessed Middle East risks and possible US measures to ease restrictions on the so-called shadow fleet of oil tankers.

Our Stance: Australian equities ended Friday on a firm footing, with the S&P/ASX 200 gaining 1.00% to 8,806.70, supported by a sharp technology rebound and strength in materials. However, gains across only six sectors suggested market confidence remained selective. Meanwhile, stronger precious metals prices reflected continued interest in defensive assets, even as copper advanced. Federal Reserve Chairman Kevin Warsh’s cautious remarks offered little clarity on October’s policy direction amid persistent inflation concerns. Overall, the market remains cautiously positive, with improving Equity momentum encouraging, although uneven sector participation and global policy uncertainty require attention.

From a technical perspective, the S&P/ASX 200 Index advanced in the latest trading session, maintaining a constructive near-term outlook despite the recent pullback. The index continues to hold above key support at 8,760.50, which remains critical to preserving the broader bullish structure. Sustained trading above this level could stabilise market sentiment and support a recovery towards recent highs. On the upside, immediate resistance is positioned near 8,840, and a decisive breakout above this level could reinforce buying momentum and pave the way for further gains towards the next target of 8,880. However, a sustained break below 8,760.50 could weaken the technical outlook and increase downside risks.