The ASX 200 fell 1.2% for the week as weakness in Financials (-2.1%) and Materials (-2.4%) offset a strong rebound in technology stocks. The ASX Tech Sector surged 7.7%, led by Pro Medicus (+25%), Megaport (+23%) and WiseTech Global (+11%), as investor concerns around AI disruption eased.
Market sentiment remained cautious amid escalating US-Iran tensions, falling iron ore prices and ongoing softness in the Australian property market. Miners, banks and gold stocks were among the worst performers, while investors increasingly rotated towards defensive sectors.
A stronger-than-expected US jobs report late in the week pushed bond yields higher and reignited concerns that the Federal Reserve may need to keep interest rates elevated. The NASDAQ fell 4.8%, its sharpest decline since April 2025.
Looking ahead, US CPI data will be the key focus. A softer inflation reading could support growth and technology stocks, while a stronger result may pressure rate-sensitive sectors and reinforce expectations of further policy tightening.
SPI Futures currently suggest the ASX 200 could open around 1.3% lower when trading resumes.
Defensive rotation dominated Friday's session as traders continued to shed miners and banks in favour of healthcare and consumer staples, with iron ore's slide to a three-month low and lingering global uncertainty around the lingering Iranian situation hurting sentiment. The ASX 200 finished the week down –1.22%, capping a broadly risk-off five days.
The ASX200 retreated on Thursday as geopolitical concerns returned to the forefront, with fresh hostilities between the US and Iran offsetting recent optimism around peace negotiations. At the same time, investors took the opportunity to bank gains in the high-flying mining sector, which has supported the market through May.
The ASX was on the back foot from the opening bell as investors digested overnight missile strikes between the US and Iran. Selling was significant but orderly, with the market moving gradually lower through the morning before popping and stabilising ~30pts above the lows for much of the afternoon.
The ASX 200 traded above 8800 on Wednesday for the first time in four weeks as the miners and energy stocks pushed the index up +0.6% despite less than 45% of the main board closing higher. From a performance perspective, it was very much a case of “same story, different day” with BHP’s +2.4% advance, posting new all-time highs again, contributing ~60% of the main board's advance.
The market pushed higher as the day progressed, underpinned by weaker-than-expected GDP data bolstering hopes the Reserve Bank may hold off on further rate increases. The economy is slowing, the budget has knocked confidence, and it would be extraordinary if the RBA hiked in this environment – the market is slowly latching onto this view by the look.
The ASX performed resolutely on Tuesday to reverse early triple-digit losses and end the day down just -0.1%. In line with the 2026 playbook, the heavyweight miners, ably supported by the tech stocks, largely offset weakness in the banks, rate-sensitive stocks and the broader market, which saw over 60% of the main board close lower on the day. It's becoming repetitive of late, but +1.4% rally by BHP Group (ASX: BHP), to another all-time high, combined with positive moves by RIO Tinto (ASX: RIO) and Northern Star (ASX: NST) to add 30-points to the index, but weakness in the banks, and in particular ANZ, Westpac and NAB was enough to take more than 20-points from the index.
The ASX had another volatile session, falling sharply in early trade before recovering the bulk of its losses through the afternoon. The market was caught between a strong lead from Wall Street's record highs and fresh uncertainty around the Middle East, with conflicting signals on ceasefire negotiations keeping oil prices elevated and broader sentiment cautious.
The ASX 200 struggled on Monday despite the bullish offshore leads from Wall Street - again, the Australian market remains more correlated to European bourses than the more widely discussed US peers. However, the local market managed to recover from early-morning weakness to end the first session of June marginally lower, as the miners again countered the ongoing weakness in the banking sector, primarily due to a 1% dip in Commonwealth Bank (ASX: CBA). With BHP Group (ASX: BHP) posting new all-time highs yesterday lunchtime and the “Big Four Banks” weighed down by concerns around the housing market post the budget, and high valuations compared to their international peers, we see no reason to fade the outperformance by the miners versus the banks:
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