Market close • Australia • Tue, Feb 3, 2026
The benchmark rebounded sharply from Monday’s sell-off, but trimmed gains as investors weighed the first hike in more than two years and signals of more tightening ahead.
The S&P/ASX 200 finished Tuesday’s session higher, closing at 8,857.10, up 78.50 points (+0.89%). By around 3:30pm AEDT, the index was still about 75 points higher near 8,854 before settling slightly stronger into the close.
| ASX 200 close snapshot | Level | Notes |
|---|---|---|
| Close | 8,857.10 | Market closed; gains trimmed late |
| Change | +78.50 (+0.89%) | Rebound after Monday’s sharp sell-off |
| Open | 8,778.60 | Strong lead from Wall Street |
| High | 8,896.60 | Early surge peaked near midday |
| Low | 8,778.60 | Dip held above key technical areas |
Chart slot: Add your intraday ASX 200 screenshot here to show the early jump, afternoon fade, and late stabilization near the close.
Why the rally cooled: The ASX 200’s early momentum was driven by a robust lead from the US session and a steadier tone across industrial metals, helping risk appetite recover after Monday’s sharp pullback. But the tone shifted into the afternoon as traders braced for the Reserve Bank of Australia’s meeting outcome — and then quickly recalibrated once the decision landed.
The RBA delivered its first interest rate hike in more than two years, pairing it with a notably hawkish message as inflation dynamics darkened. The central bank flagged a material pickup in inflation in the second half of 2025, warning that capacity pressures could keep inflation above target for an extended stretch. For readers wanting the official wording and context, the cleanest reference point is the RBA’s board decision archive.
The bank’s statement also underscored an economy still showing momentum: stronger growth in private demand, a housing market that hasn’t meaningfully cooled, a labour market that remains tight, and credit conditions that are still “readily available” for households and businesses. That mix — sticky inflation plus resilient demand — is exactly the backdrop that tends to push a central bank towards doing more, not less.
Reinforcing that signal, the RBA’s updated forecasts lifted the end-2026 trimmed mean inflation projection to 3.2% (from 2.7%) and nudged its end-2026 unemployment forecast to 1.8% (from 1.9%). The implied track for the cash rate points to roughly 35bp of additional hikes, taking the rate towards about 4.20% — a path that can cap equity upside, even on strong rebound days.
What held up the index: Despite the rate shock, leadership was broad enough to keep the market in the green into the close, especially across materials, rare earths, and pockets of technology.
Materials sector
Materials held onto gains as copper, silver, and gold rebounded overnight, supporting miners even after the RBA’s hawkish shift.
- Capstone Copper: +4.84% to $16.69
- Silver Mines: +4.55% to $0.23
- Newmont: +5.81% to $165.03
Rare earths surge
Rare earths outperformed after fresh US stockpiling plans for critical minerals sparked renewed enthusiasm for supply chain “de-risking” themes and reduced reliance on China.
- Larvotte Resources: +9.06% to $1.45
- Metallium: +8.02% to $0.87
- Brazilian Rare Earths: +6.52% to $3.92
Technology pockets stay hot
Local IT names found buyers as investors positioned ahead of major US tech earnings this week, keeping the “AI and cloud” narrative in play even as rates moved higher.
- Appen: +12.84% to $1.89 (extending gains after a strong quarterly update)
- DroneShield: +6.81% to $3.68
- Life360: +3.54% to $28.50
Technical picture into the next session: Last week the ASX 200 ran into sellers ahead of trend channel resistance near 9,000, then slipped below trend support on Monday. Tuesday’s rebound pushed the index back into the upward-sloping channel — a constructive sign that the broader uptrend remains intact.
Bulls will likely keep an eye on whether the index can build on today’s recovery and re-attack the 9,000 area, with the longer-term reference still the 9,115.2 record high. But downside levels matter too, particularly now that the RBA has shifted from patience to tightening.
A break below trend channel support near 8,800 — and then below Monday’s 8,746.2 low — would increase the risk of technical damage and a deeper pullback, with the 200-day moving average near 8,667 the next major line traders typically watch.
The takeaway from Tuesday’s close is less about the headline gain and more about the shape of the day: a powerful rebound that met a fresh macro reality. With the RBA now openly leaning hawkish and markets absorbing a new rate trajectory, the ASX 200 may stay sensitive to inflation prints, bank commentary, and global risk mood — especially if Wall Street volatility returns.
