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Highlights

  • ASX tech sub-index (.AXIJ) climbs 1.6% to 2,711.5 — highest level since February 24.

  • Life360 leads the charge, soaring 13% to an all-time high on Q1 performance.

  • Gains mirror overnight surge in U.S. markets following soft inflation data.

Australian technology stocks rallied sharply on Wednesday, with the S&P/ASX 200 Information Technology Index (XIJ) jumping as much as 1.6% to 2,711.5, its highest level since February 24. The gains came in step with an overnight rally on Wall Street, where softer U.S. inflation data and renewed trade optimism buoyed investor sentiment.

The tech rally was led by Life360 Ltd (ASX:360), which surged 13% to a record AU$30.70, making it the top percentage gainer on the ASX 200 benchmark (XJO). The location-sharing app developer extended its recent momentum after delivering significant first-quarter results.

Other notable movers included Megaport Ltd (ASX:MP1) and WiseTech Global Ltd (ASX:WTC), which posted gains of 0.9% and 0.7%, respectively. Both stocks benefited from the broader uplift in tech valuations and optimism around digital infrastructure demand.

The rally followed a strong session in the U.S., where the S&P 500 and Nasdaq indexes closed significantly higher. A cooler-than-expected inflation print sparked hopes that the Federal Reserve may pause or ease interest rates sooner than anticipated, encouraging a global risk-on trade, especially in growth-oriented sectors like technology.

Despite today's surge, the Australian tech sub-index remains down 1.6% year-to-date.