Sydney, Feb 10, 2026, 17:08 AEDT — The market has wrapped up for the day.
- Xero shares gained 2.2% by the close, marking a two-day bounce for software stocks that had been under pressure.
- Tech stocks have found firmer footing after last week’s AI-fueled rout; now, attention shifts to macro data.
- All eyes now turn to Xero’s May 14 results update, as traders hunt for more clarity on its U.S. performance.
Xero Ltd ended Tuesday at A$84.76, up 2.2%, notching a second day in the green after last week’s heavy tech rout in Australia. The shares changed hands anywhere from A$82.40 to A$85.63.
Xero tends to come up whenever traders talk shifting risk appetite in Australia’s growth space. The S&P/ASX 200 Tech Index just logged a 5.4% gain across two sessions, though it’s still down 7.8% for the week—data from MarketIndex underscores just how tentative this rebound remains.
Overnight, U.S. tech shares bounced back, getting a lift after what Reuters called an AI-driven selloff. Some investors stepped in, looking for bargains before crucial U.S. economic numbers hit. “You’ve a sharply oversold market where a little bit of good news can go a long way,” said Keith Lerner, chief investment officer at Truist Advisory Services, in comments to Reuters. Reuters
Not much movement across the broader local market. The ASX 200 edged down 0.03%, settling at 8,867.4, despite trading higher for most of the session, the ABC Markets live blog reported. CSL was in focus too, after the company announced its chief executive will exit the role on Wednesday, just before half-year results drop.
Just a week back, Xero delivered its latest update, with an investor briefing zeroed in on artificial intelligence and how U.S. payments are tracking. CEO Sukhinder Singh Cassidy told investors the team remains “deeply focused” on what she called the “global AI and US accounting plus payments” play — that’s the total addressable market, or TAM, in industry jargon. The company flagged its next significant update will drop on May 14 with FY26 results, promising more insight into Melio and the state of U.S. operations. ASX filing (PDF)
Xero has managed two days in the green, but the stock remains well under where it stood earlier this year and is currently sitting about 57% below its 52-week high, according to public market data. That steep drop has left shares quick to react to any hint that AI-driven software is changing small business spending — and what those businesses will actually shell out for it.
Next session, traders will be looking to see if the sector bounce has legs once volume picks up, and if attention sticks with earnings—not just the latest AI disruption stories. In Australia, reporting season heats up through the week, and that can send sentiment swinging fast between growth and defensive names.
There’s still a chance the rebound fizzles out—a classic dead-cat bounce. If U.S. inflation data comes in above forecasts, or bond yields spike, high-multiple software stocks could take another hit. And if there are signs that small businesses are pulling back on spending, subscription-heavy models would probably feel it before the rest.
