FEAR & GREED | Business News Rate hike likely after CPI surprise; ASX record high; Trump’s rollicking State of the Union
Feb 25, 2026
Higher-than-expected CPI lifts the odds of a near-term interest rate hike. The ASX hits a record high amid strong corporate results. Woolworths posts a bumper profit and a one-day share surge. WiseTech announces 2,000 job cuts as AI reshapes work. A lengthy, theatrical State of the Union fuels talk of tariffs, courts and foreign policy.
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Markets Reprice For More RBA Tightening
- Markets quickly priced a higher chance of more RBA tightening after the CPI surprise, pushing the aussie up and bond yields higher.
- Michael Thompson notes bond sell-off signals traders expect rates 'ain't coming down anytime soon' and may even rise.
Anticipate Budget Restraint Messaging Before May
- Expect fiscal discipline rhetoric before the May budget as Treasurer Jim Chalmers asks departments to find savings.
- Michael Thompson warns governments risk voter backlash if they run big spending while inflation stays hot.
Stocks Rally Even As Inflation Grows
- Despite hotter CPI, ASX 200 hit an all-time closing high at 9,128, up 1.2% and 10.5% over 12 months.
- Sean Aylmer attributes the rally mainly to strong earnings season led by Woolworths.