The benchmark S&P/ASX200 index recovered from a midday lull on Monday to finish up 19.5 points, or 0.22 per cent, to 8,937.1, while the broader All Ordinaries gained 25 points, or 0.27 per cent, at 9,163.8.
The gains came after a cooler-than-expected US inflation readout at the weekend was seen as increasing odds the Federal Reserve will cut interest rates three times in 2026, rather than twice.
Eight of the ASX's 11 sectors finished higher, with materials and utilities lower and financials basically flat.
The bourse's battered tech sector rebounded dramatically on Monday, rising 5.7 per cent in its best single-day performance since a 7.6 per cent rise on April 10.
That still leaves the sector down 20.2 per cent for the year, however, having lost ground every week so far in 2026 amid fears artificial intelligence could disrupt the business models of software-as-a-service firms.
Xero on Monday rose 7.6 per cent, Wisetech Global climbed 12.9 per cent, Life360 grew 6.8 per cent and Treasury One lifted 5.6 per cent.
The consumer discretionary sector rose 1.6 per cent after JB Hi-Fi reported a 7.3 per cent lift in first-half sales and an 8.1 per cent rise in earnings.
"In a retail environment where customers are seeking value, our brands continue to resonate strongly," chief executive Nick Wells said.
JB Hi-Fi shares rose 7.5 per cent to $82.40, while Harvey Norman gained 1.3 per cent and Lovisa added 1.7 per cent
On the flip side, Treasury Wine Estates was the worst performer in the ASX200, falling 5.2 per cent to a two-month low of $4.97 after the Penfolds owner scrapped its dividend while reporting a statutory loss of $649.4 million following poor sales in the US and China.
A2Milk gained 6.8 per cent to $9.10 after lifting its full-year guidance following a strong first half, including a 19.6 per cent rise in underlying profit.
In the heavyweight mining sector, Rio Tinto slid 4.1 per cent to a one-week low of $162.75 after a weekend fatality at its Simandou iron ore project in the West African nation of Guinea led to a halt in its operations there.
BHP dropped 1.5 per cent to $50.36, Fortescue fell 4.7 per cent to $20.21 and Mineral Resources subtracted 1.2 per cent to $51.60.
Goldminers were mostly higher, however, as the precious metal traded about $US5,047 an ounce. Northern Star advanced 0.3 per cent and Newmont added 2.7 per cent.
Elsewhere in the sector, BlueScope Steel fell 2.7 per cent to $28.37 as the nation's largest steelmaker reported a half-year net profit of $391 million, more than double the number from a year ago.
The big four banks were mixed, with ANZ falling 3.1 per cent to $39.63 and NAB dropping 1.0 per cent to $45.54, while CBA added 1.2 per cent to $178.28 and Westpac advanced 0.2 per cent to $40.61.
Bendigo and Adelaide Bank dropped 2.2 per cent after the regional bank reported $256.4 million in half-year cash earnings, down 3.3 per cent from a year ago.
Eighty different ASX-listed companies will report earnings this week, one of the busiest stretches of the earnings season.
The Australian dollar was trading for 70.88 US cents, up from 70.68 US cents at 5pm on Friday.
ON THE ASX:
* The S&P/ASX200 rose 19.5 points, or 0.22 per cent, to 8,937.1
* The broader All Ordinaries gained 25 points, or 0.27 per cent, to 9,163.8
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 70.88 US cents, from 70.68 US cents at 5pm AEDT on Friday
* 108.58 Japanese yen, from 108.39 Japanese yen
* 59.73 euro cents, from 59.61 euro cents
* 51.96 British pence, from 51.97 British pence
* 117.42 NZ cents, from 117.32 NZ cents
