S&P/ASX 200 Index (ASX: XJO) investors appear relieved by May’s inflation print, reported by the Australian Bureau of Statistics (ABS) at 11:30am AEST.

In the minutes that followed that release, the ASX 200 jumped 0.2%.

Here’s what we know.

ASX 200 gains on mixed inflation print

The ABS reported that the Consumer Price Index (CPI) rose 4.0% in the 12 months to May 2026. That’s down from the 4.2% reading reported for the 12 months to April last month, likely lifting ASX 200 investor sentiment.

Housing continues to be the biggest driver of rising costs, with housing up 6.5%. Food and non-alcoholic beverages prices increased by 3.3%, with annual transport costs also up 3.3%.

One bright spot was fuel prices.

Rachael McCririck, ABS head of prices statistics, noted:

On a monthly basis, Automotive fuel prices fell 11.9% in May, after falling by 7.0% in April. These monthly falls include the impacts of the halving of the fuel excise on 1 April and lower world oil prices in recent weeks.

But ASX 200 investors aren’t out of the woods yet when it comes to further potential interest rate hikes from the RBA.

Trimmed mean inflation, which takes out certain volatile items (like fuel) and is the RBA’s preferred gauge, increased to 3.6% in the 12 months to May 2026. That’s up from 3.4% in the 12 months to April. And it’s also higher than consensus economist forecasts of a 3.5% increase in trimmed mean inflation.

What are the experts saying on RBA interest rates and the latest inflation print?

As you’re likely aware, a primary concern for ASX 200 investors and mortgage holders alike is how the RBA will respond to the ongoing elevated inflation levels in Australia.

The RBA’s next interest rate setting meeting takes place on 11 August.

According to Josh Gilbert, lead analyst for APAC at eToro:

The board will be watching closely, having finally hit pause after three consecutive hikes since February. Last week, it was clear that the central bank wants to step back and assess how earlier tightening is filtering through, rather than keep its foot to the floor.

The problem is that inflation is still too high, while the labour market is showing clearer signs of softening. That leaves the RBA walking a narrow path between doing enough to bring inflation back to target and doing too much damage to households and the jobs market.

VanEck head of investments and capital markets, Russel Chesler, added (quoted by the Australian Financial Review):

The RBA now faces an increasingly uncomfortable trade-off. We do not expect today’s rise in trimmed mean inflation to be enough to force another hike in August 2026, but the case for easing has become harder to make.

GDP growth is weakening, unemployment has risen to 4.5%, households are running down savings buffers, and spending is already outpacing disposable income.

The post Why is ASX 200 jumping on the latest inflation data? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After a brutal start to the week, heavyweight ASX tech stocks have staged a sharp rebound on Wednesday.

WiseTech Global Ltd (ASX: WTC) jumped 11% to $31.91, while Xero Ltd (ASX: XRO) climbed 7% to $69.65. The recovery offered some relief after heavy selling pressure across both stocks.

Despite the bounce, the damage over the past year remains severe for the ASX tech giants. WiseTech is still down around 70% over 12 months, while Xero has fallen roughly 64%. Over the same period, the S&P/ASX 200 Index (ASX: XJO) has gained about 3.7%.

So is the worst over, or just a pause in a broader downtrend?

WiseTech Global: Sentiment-driven sell-off

WiseTech’s recent volatility has been driven less by operational weakness and more by sentiment and headline risk.

The logistics software leader has been caught in a wave of investor concern surrounding governance issues and ongoing scrutiny linked to founder Richard White. That uncertainty has weighed heavily on sentiment, triggering sharp share price de-ratings.

Yet the latest rebound of the ASX tech stock suggests some investors believe the sell-off may have gone too far.

Fundamentally, WiseTech remains a dominant player in global logistics software through its CargoWise platform. The system is deeply embedded in the operations of freight forwarders, customs brokers, and logistics providers around the world.

That level of integration creates strong switching costs. Once customers adopt CargoWise into core workflows, replacing it becomes costly, disruptive, and operationally risky.

This structural moat is why many long-term investors still see underlying value in the business, even as short-term sentiment remains fragile.

Today’s 11% bounce may reflect bargain hunting after an extended period of forced selling rather than a fundamental shift in outlook. However, it does suggest that at least some market participants believe the risk-reward balance is starting to improve.

Xero: Caught in the growth stock unwind

Xero’s recovery has a different driver.

Unlike WiseTech, Xero’s challenges have been less about company-specific issues and more about sector-wide pressure on growth and technology stocks.

Over the past year, investors have aggressively de-rated software companies as interest rate expectations, valuation concerns, and risk appetite all shifted.

The ASX tech stock has not been immune. Despite continued revenue growth, customer base expansion, and strong recurring subscription income, Xero’s share price has been heavily compressed.

That recurring revenue model remains one of Xero’s key strengths. Subscription-based income provides visibility and stability, which is highly valued in software businesses over the long term.

However, in the current environment, the market has been more focused on valuation contraction than underlying growth.

The recent 7% rebound suggests that sentiment may be stabilising, at least in the short term, as investors reassess whether the sell-off has overshot fundamentals.

What happens next?

Both ASX tech stocks now sit at an interesting crossroads.

WiseTech is grappling with rebuilding investor confidence after governance-related uncertainty, while Xero is navigating a broader reassessment of software valuations.

In both cases, the recent rally may reflect a shift in sentiment rather than a full reversal of trend.

The post ASX tech giants bounce back from heavy losses appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares have continued to slide over the past month.

During this time, the counter-drone technology company’s shares have lost almost 20% of their value.

But that doesn’t reflect a lack of progress from the company. In fact, there have been a number of announcements over the period.

And one that could have flown under the radar from this week relates to its European operations.

Let’s take a closer look at what the company has announced.

What did DroneShield announce?

On Tuesday, DroneShield announced the launch of a strategic supply chain campaign in Poland, which aims to strengthen local industry engagement and support the delivery of next-generation sovereign and allied counter-drone capability across Europe.

The company revealed that the campaign will see DroneShield expand engagement with Polish manufacturing and technology partners to drive a more resilient and scalable supply chain.

This is aligned with growing European demand for counter-uncrewed aircraft systems (CUAS).

DroneShield advised that the initiative is intended to support European military, public safety, and critical infrastructure customers that are seeking proven counter-drone solutions with strong local industrial participation.

The campaign is being timed to coincide with the release of DroneShield’s accompanying European supply chain expansion document. This document will outline its approach to working with Polish partners across areas including advanced manufacturing, subsystem supply, electronics, testing, sustainment, and capability integration.

‘An important strategic market’

Commenting on the plans, DroneShield’s Europe-based technical and supply chain manager, Ciaran Mannion, said:

Poland is an important strategic market for DroneShield and a natural fit for deeper industrial collaboration. This campaign reflects our commitment to working with capable local partners to support European requirements with proven counter-drone technology, responsive delivery, and sovereign capability.

As demand for counter-drone capability continues to grow, customers are increasingly looking for trusted suppliers who can combine world-class technology with strong local industrial support. Our Polish supply chain campaign is designed to help meet that need.

The company notes that the Polish supply chain campaign forms part of its broader international growth strategy. It reflects DroneShield’s focus on building durable partnerships in priority markets where national security, defence modernisation, and critical infrastructure protection remain key policy and procurement priorities.

Despite recent share price weakness, DroneShield’s shares are still beating the market over the past 12 months. During this time, they have generated a 41% return for investors. So, it isn’t all doom and gloom.

The post Own DroneShield shares? Here’s some news you might have missed appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.