Friday has delivered a much stronger finish to the week for the S&P/ASX 200 Index (ASX: XJO).
At the time of writing, the benchmark index is up 1.24% to 8,699.3 points.
The rally comes after a rough session on Thursday, when the ASX 200 fell 1.43% as a spike in oil prices and renewed US-Iran tensions hit investor sentiment.
Nonetheless, the index has clawed back part of that fall today, helped by less pressure across commodity markets and a strong night on Wall Street.
Reuters reported that oil prices were heading for a weekly fall as traders weighed the possibility of lower geopolitical risk.
US markets also gave local investors something to work with, with major share market indices pushing to record highs overnight. That helped offset some of Thursday's pain, when elevated oil prices weighed on risk sentiment.
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Miners lead the rebound
The strongest buying is coming through the resources sector, with the S&P/ASX 200 Resources Index (ASX: XJR) up 2.3%.
BHP Group Ltd (ASX: BHP) has been among the major contributors, with its shares up 1.9% to $62.45.
Gold miners have also helped lift the index, with Northern Star Resources Ltd (ASX: NST) up 5.7% to $19.91, Evolution Mining Ltd (ASX: EVN) up 5.2% to $12.26, and Newmont Corp (ASX: NEM) up 3.8% to $155.16.
Property and infrastructure names are also adding support. Goodman Group (ASX: GMG) is up 1.2% to $31.13, while Transurban Group (ASX: TCL) is 1.3% higher at $14.54.
The banks are also adding support, though their moves are more modest.
Commonwealth Bank of Australia (ASX: CBA) is climbing 0.5% to $162.26, Westpac Banking Corp (ASX: WBC) is 0.5% higher at $36.09, National Australia Bank Ltd (ASX: NAB) is up around 0.3% to $37.22, and ANZ Group Holdings Ltd (ASX: ANZ) is lifting 0.9% to $35.20.
Why investors are buying again
Today's rally suggests buyers are starting to return to the market after Thursday's sell-off.
The US-Iran situation remains volatile, and oil prices can change quickly when headlines shift. But investors appear more comfortable buying back into the market after Wall Street hit fresh highs and crude prices lost some of their heat.
The index is now up 0.90% over the past week, but it's still slightly lower over the past month and for 2026. Over the past year, the ASX 200 remains up about 3.44%.
The next test is whether today's rebound can hold if oil prices turn higher again over the weekend.
