Good morning and welcome to Markets Desk.
Australian equities are under pressure in mid-session trade Thursday, with the S&P ASX two hundred slipping well below the eight thousand seven hundred level. The selloff follows broadly negative cues from Wall Street overnight, reversing the gains from the prior session and reflecting a cautious tone across Asia-Pacific markets.
Turning to valuations, the S&P five hundred's Shiller CAPE ratio has now reached a level seen only once before in its sixty-nine year history. That prior instance carries a clear historical warning — elevated valuations at this extreme have consistently preceded periods of significantly weaker forward returns, and the data on that point leaves very little room for debate.
And on the capital expenditure front, the four largest hyperscalers are on track to deploy as much as seven hundred twenty-five billion dollars in AI infrastructure spending this year. That staggering figure is reshaping supply chains and creating a new class of beneficiaries — from semiconductor manufacturers to power infrastructure providers — as the buildout accelerates well beyond earlier projections.
That's the tape. Markets Desk, signing off the floor.
