Australian shares have reached a historic milestone, with the S&P/ASX 200 index surging to a record high of 9,130.30 points. The market closed 1.2% higher at 9,128.30 points, marking its strongest single-session performance in two weeks. This rally was powered by a wave of exceptional corporate earnings that overshadowed mounting concerns regarding persistent inflation and higher interest rates. Woolworths emerged as a primary catalyst for the market's ascent. The retail giant’s shares jumped 13% to reach a 17-month high after reporting a first-half profit that exceeded market expectations. The company also upgraded its full-year guidance, driving the broader consumer staples sector to its best day in six years with a 5.7% gain. Technology and mining stocks provided additional momentum. WiseTech Global shares surged more than 10% following a robust revenue report and news of an efficiency-driven restructuring. In the resources sector, Fortescue led the charge with a 4.7% gain after announcing a 23% jump in half-year profits and record iron ore shipments. This performance pushed the materials index to its own record high, with BHP and Rio Tinto also recording gains of 2.8% and 2.4%, respectively. Economic data released simultaneously revealed that the Australian economy remains hotter than anticipated. The annual inflation rate rose to 3.8% in January, slightly above the forecast of 3.7%. Core inflation, as measured by the RBA’s trimmed mean, also edged up to 3.4%. This inflationary pressure has intensified expectations for further monetary tightening. Investors have increased the probability of a quarter-point rate hike in May to 80%. The Reserve Bank of Australia previously raised the cash rate to 3.85% earlier this month, and current projections suggest it could reach 4.10% by mid-year. Despite the prospect of higher borrowing costs, the equity market remains anchored by resilient corporate fundamentals and a tight labor market, where unemployment holds steady at 4.1%. Analysts have recently upgraded aggregate earnings-per-share forecasts for 2026 by roughly 2.2%, suggesting a constructive outlook for the medium term.