ASX Market Wrap: Tech Stocks Outperform as BHP Weighs on Market; SpaceX Wipes Over A$1 Trillion in Value

The Australian share market edged lower on Thursday, giving back early gains as weakness in major mining stocks outweighed strength across technology, financials and consumer-facing companies.

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At midday, the S&P/ASX 200 was down 0.24% to 8,819.6 points, while the All Ordinaries slipped 0.23%. In contrast, the ASX All Technology Index climbed 0.89%, highlighting a shift in where investors chose to put fresh money.

Rather than a broad market sell-off, Thursday’s session reflected a rotation in leadership. Investors continued favouring growth sectors while reducing exposure to large resource companies, despite commodity prices remaining relatively firm.

The biggest drag came from BHP, Australia’s largest listed company, after releasing its latest operational update. The miner reported record annual iron ore production of 291 million tonnes and stronger realised iron ore prices, but the market focused on guidance that copper production could fall by around 12% next financial year because of lower ore grades at its Escondida mine in Chile.

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The company is also monitoring potential industrial action at Port Hedland, where prolonged disruptions could affect exports from one of the world’s busiest iron ore hubs.

RBC Capital Markets analyst James Redfern noted that while current copper production broadly met expectations, the forecast decline next year attracted greater attention as copper remains one of the mining industry’s most closely watched growth commodities.

The shift away from mining stocks came even as iron ore traded around US$100.55 a tonne and copper prices edged higher. Brent crude also remained elevated at US$85.26 a barrel, reflecting ongoing geopolitical concerns surrounding global energy supplies.

While resources struggled, technology stocks extended their recent momentum. Telecommunications rose 1.27%, consumer discretionary gained 1.16%, financials climbed 0.67%, healthcare added 0.61%, and information technology advanced 0.44%.

The sector rotation mirrors a broader global trend. Investors are becoming increasingly selective, favouring companies with visible earnings growth while taking a more cautious approach toward businesses whose valuations rely heavily on future expectations.

Overnight, Wall Street finished higher, with the Dow Jones rising 0.29%, the S&P 500 gaining 0.38% and the Nasdaq adding 0.62%.

One of the biggest talking points remained SpaceX, which has reportedly lost more than A$1 trillion in market value from its post-IPO highs as enthusiasm surrounding the listing gave way to questions about valuation, future capital requirements and funding needs.

Pepperstone Head of Research Chris Weston said the company’s early rally had been fuelled by limited stock availability and excitement surrounding its artificial intelligence ambitions.

“The initial rally around SpaceX’s IPO was driven by the scarcity of free float,” Weston said.

“Many unrestricted investors viewed prices above US$200 as overextended and chose to lock in profits. SpaceX has increasingly positioned itself as an AI company. Given the recent rotation out of AI infrastructure, it is perhaps no surprise SpaceX has been caught up. Capital raisings are likely to become a regular feature for investors. Investors should generally be willing to fund those ambitions, provided management continues to demonstrate meaningful revenue growth and long-term value creation.”

Senior market analyst Tony Sycamore said investors were increasingly weighing growth prospects against valuation.

“These were incredible gains in the early stages, then we saw the reality around valuation. Initially SpaceX was trading somewhere between 90 and 110 times revenue. Tesla is about 16 times and that’s considered expensive. This isn’t a bond market, it’s literally about space. SpaceX is the new frontier, but it also has a lot of unknowns.”

Away from equity markets, Commonwealth Bank’s June Household Spending Insights suggested Australian consumers remain cautious. Spending increased just 0.3% during the month, with stronger growth in utilities and education offset by softer retail and hospitality spending despite end-of-financial-year sales.

Globally, Moody’s Analytics maintained that artificial intelligence investment continues to support economic activity, forecasting global growth of 2.5% in 2026 and 2.8% in 2027. However, it warned that geopolitical tensions, elevated asset valuations and financial market volatility remain meaningful risks.

Elsewhere, BlackRock delivered stronger-than-expected second-quarter earnings as assets under management climbed to a record US$15.34 trillion. The world’s largest asset manager attracted US$192 billion in net client inflows, driven by continued demand for exchange-traded funds and equity products.

Chief Executive Larry Fink said, “Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology. The scale and depth of our client relationships globally have never been greater.”

Among the day’s strongest performers were Amplitude Energy (+7.17%), Star Entertainment (+7.14%), AMP (+5.93%), Mercury NZ (+5.14%), SKS Technologies (+4.68%), Mesoblast (+4.63%), REA Group (+4.32%) and Life360 (+3.80%).

The biggest declines came from AIC Mines (-15.95%), Dateline Resources (-9.38%), Aura Consolidated (-8.18%), Cauldron Energy (-8.00%) and Wildcat Resources (-6.32%), with mining and exploration stocks accounting for most of the market’s weakest performers.

Thursday’s trading reinforced a theme that has become increasingly evident across global markets. Investors are no longer rewarding growth at any price. Instead, capital is flowing toward businesses that can demonstrate sustainable earnings, disciplined investment and clear commercial execution. As that trend continues, technology and financial stocks are attracting renewed interest, while even high-quality resource companies face closer scrutiny when future growth expectations soften.

Sources: ASX market data; Reuters; Commonwealth Bank Household Spending Insights; Moody’s Analytics; BlackRock Q2 2026 results; Pepperstone; RBC Capital Markets.