It's been another momentous day for the S&P/ASX 200 Index (ASX: XJO) and the broader Australian share market this Wednesday. Yesterday, the ASX 200 Index closed at a lofty 8,770.4 points. But investors were clearly hungry for more today, with the index quickly climbing even higher upon market open this morning.
The index crashed through the previously untouched 8,800-point threshold before lunchtime today. Then, this afternoon, investors pushed it even higher, with the ASX 200 touching a new record of 8,827.4 points just before 1 pm. At the time of writing, investors have cooled their jets a little, but the ASX 200 remains at a confident 8,820 points.
It's an extraordinary level for the ASX 200, putting the index up 7.54% year to date. Investors have also enjoyed a hefty return of 14.82% over the past 12 months. And that's not including dividend returns either.
Investors have been fired up ever since the release of the June inflation numbers at the end of last month, despite a few wobbles. As we covered at the time, those June inflation numbers showed price rises cooling to an annualised rate of 2.1%. As that is well within the Reserve Bank of Australia (RBA)'s 2-3% target band, investors now expect the bank to accelerate its current cycle of interest rate cuts.
Although the RBA has already cut rates twice in 2025 so far, the ASX's interest rate tracker is currently indicating a 52% chance of a double, 50-point rate cut at the RBA's next meeting on 12 August. As many investors would be aware, interest rate reductions are good news for the share market. That's because they tend to draw capital away from 'safe' investments like term deposits and government bonds, and into shares and property.
Which ASX 200 shares are driving the market to new records?
But let's talk about the ASX 200 shares that investors have to thank for today's new record high.
As usual, the banks are pulling their weight. The ASX 200's largest (and most influential) stock, Commonwealth Bank of Australia (ASX: CBA), is currently up around 0.7% at just under $180 a share. Westpac Banking Corp (ASX: WBC) is also seeing some interest, while National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) are treading water.
Mining giant BHP Group Ltd (ASX: BHP), the ASX's second-largest stock, is also driving the broader market higher. Its shares are presently up 0.65% at just over $40 each.
CSL Ltd (ASX: CSL), which occupies the third spot on the ASX 200's podium, has ticked 0.5% or so higher so far this Wednesday.
Woodside Energy Group Ltd (ASX: WDS) and Wesfarmers Ltd (ASX: WES) are also lending a hand. Woodside particularly so, with its shares currently enjoying a 1% bounce. Wesfarmers is up by a tamer 0.47% at present, although it's seen a new all-time high of its own this morning.
So it's thanks to these collective rises that we are seeing this new ASX 200 record today. Let's see if 8,900 points is next.
