ASX 200 tech shares led the 11 market sectors last week, soaring 8.2% as its comeback continued.
Healthcare shares weren't far behind with a 5.5% gain, making this another impressive week for the rebounding sector.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) surged 2.3% to close at 8,976.8 points on Friday.
A better-than-expected inflation report last week reduced the risk of the Reserve Bank raising interest rates again on 11 August.
This, along with more oil tankers getting through the Strait of Hormuz, provided substantial tailwinds for the market last week.
All but one of the 11 market sectors finished the week in the green.
Let's review.
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ASX 200 tech shares and healthcare outperform
ASX 200 tech shares are continuing to recover from a 48% sector meltdown between 29 August 2025 and 30 March this year.
Stretched valuations and fears that massive artificial intelligence (AI) capex spending would fail to yield high returns drove the downturn.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) is now up 17% since 30 March vs. a 6.1% lift for the broader ASX 200.
Last week, ASX 200 tech shares were buoyed Microsoft Corp's (NASDAQ: MSFT) 15.5% rise on Thursday.
That was the biggest single-day increase for Microsoft shares ever.
The price jump followed the company's 4Q FY26 report, which revealed more than US$100 billion in annual revenue for Azure.
Among last week's best-performing ASX 200 tech shares was WiseTech Global Ltd (ASX: WTC), up 20.9% to $36.30.
The Xero Ltd (ASX: XRO) share price rose 13.7% to $70 per share on Friday.
TechnologyOne Ltd (ASX: TNE) shares rose 13.5% to $30.76 apiece.
The Life360 Inc (ASX: 360) share price ascended 11.1% to $25.64.
Healthcare shares fell 39% over the 12 months to 3 June, when the S&P/ASX 200 Health Care Index (ASX: XHJ) hit a 9-year low.
The sector's downward spiral was due to many industry headwinds, including currency challenges for companies reporting in US dollars, cost-of-living pressures prompting patients to delay treatments and product purchases, higher shipping costs due to the US-Iran war, new caps on insurance payouts in some nations, higher staff wages, and US regulatory uncertainty impacting the biotechs.
Value investors have swooped on healthcare shares since 3 June, with the sector up 19% versus a 2.2% lift for the benchmark index.
Last week, CSL Ltd (ASX: CSL) shares rose 7.7% to finish at $123.06 on Friday.
Shares in Chemist Warehouse owner, Sigma Healthcare Ltd (ASX: SIG), rose 3.5% to $2.94.
Resmed CDI (ASX: RMD) shares ascended 8.6% to $29.79.
Sonic Healthcare Ltd (ASX: SHL) shares rose 3% to $21.86 and Cochlear Ltd (ASX: COH) increased 7.5% to $119.94.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Information Technology (ASX: XIJ) | 8.19% |
| Healthcare (ASX: XHJ) | 5.54% |
| Consumer Discretionary (ASX: XDJ) | 4.14% |
| Communication (ASX: XTJ) | 4.1% |
| A-REIT (ASX: XPJ) | 3.53% |
| Consumer Staples (ASX: XSJ) | 2.17% |
| Materials (ASX: XMJ) | 1.84% |
| Financials (ASX: XFJ) | 1.78% |
| Industrials (ASX: XNJ) | 1.52% |
| Utilities (ASX: XUJ) | 0.18% |
| Energy (ASX: XEJ) | (0.54%) |
