On Wednesday, Australian stock markets experienced a significant rebound, with the S&P/ASX 200 index rising 113 points or 1.3%, closing at 8,794. This recovery followed a two-day losing streak and brought the index close to a two-week high. The surge was fueled by positive global cues, particularly gains in US stock futures, which followed record highs on Wall Street. Investor optimism was further enhanced by indications from former US President Donald Trump of a potential deal with Iran and a pause in US naval operations in the Strait of Hormuz, alleviating some geopolitical concerns. Additionally, stronger economic data from China, Australia's key trading partner, particularly in manufacturing and services, contributed to the positive sentiment. However, investors remained cautious ahead of upcoming trade data releases in Australia. The Reserve Bank of Australia raised interest rates for the third consecutive meeting, cautioning that rising fuel costs due to tensions in the Middle East could exert further inflationary pressures. Sector-wise, the gains were broad-based, particularly in mining, logistics, and financial stocks, with major banks posting significant increases between 2.8% and 3.5%.