Pendal: AI funding concerns weigh on Australian tech stocks

By Public Technologies
  • Australian equities gained despite an AI-linked selloff, with the S&P/ASX 300 rising 0.9% last week.
  • Large caps rose 1.5%, while the S&P/ASX Small Ordinaries fell 2.8%, highlighting sharp performance divergence.
  • Investors rotated into financials, healthcare and consumer staples as concerns over capital availability and financing costs pressured AI-linked stocks.
  • CoreWeave shares fell around 25%; its 2031 bond yield to maturity rose above 15%, underscoring funding stress.
  • Weaker Australian employment data pushed back rate-hike expectations, with markets pricing a 22% chance of an increase at the Melbourne Cup meeting.


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