ASX retreats despite Wall Street surge as tech and miners tumble

Key Highlights:

• ASX 200 dips 0.45% to 9,014.9, tracking weakness in resources and tech
• Wall Street rallies overnight on strong earnings and upbeat sentiment
• Domino’s Pizza jumps 17% after upbeat trading update; Wisetech and CSL slump
• Gold eases, copper steady; volatility index remains low
  
   

Australia’s share market slipped into the red on Tuesday, erasing early gains despite a strong overnight lead from Wall Street, as sharp losses in mining and technology stocks dragged the S&P/ASX 200 down 0.45% to 9,014.9 points.

The All Ordinaries lost 0.59% to 9,296.5, while the Small Ordinaries tumbled 1.24%, as risk appetite cooled following a stellar rally in global equities.

Wall Street sets an upbeat tone, but local miners falter

Overnight, U.S. markets posted another strong session, with investors cheering robust earnings from major tech firms and renewed optimism about economic resilience.

The Dow Jones Industrial Average climbed 0.71% to 47,544.59, the S&P 500 added 1.23% to 6,875.16, and the NASDAQ soared 1.86% to 23,637.46, boosted by gains in chipmakers and cloud computing stocks.

Analysts said U.S. investors are betting that a “soft landing” remains intact, even as the Federal Reserve signals caution.

“Earnings season has reminded investors that corporate America remains remarkably resilient,” said Art Hogan, Chief Market Strategist at B. Riley Wealth. “While valuations are high, growth remains the key narrative driver into year-end.”

Asian markets followed suit earlier in the day, with Japan’s Nikkei 225 up 2.46%, the Shanghai Composite rising 1.18%, and Hong Kong’s Hang Seng adding 1.05%.

However, the local bourse failed to sustain the global momentum, as falling commodity prices and profit-taking in large-cap tech names weighed on sentiment.

Mining slump hits sentiment

Heavyweights in the resources space came under pressure, with the ASX 200 Resources Index sinking 2.28%.

Gold miners were among the worst hit — the ASX All Ordinaries Gold Index fell 4.9% as bullion prices slipped to US$3,989.09 per ounce. Resolute Mining (ASX: RSG) dropped 12%, Lynas Rare Earths (ASX: LYC) shed 12.8%, and Arafura Rare Earths (ASX: ARU) fell 8.7%, reflecting weakness across the sector.

Base metal names also struggled as copper prices eased 0.26% to US$5.12/lb, with Develop Global (ASX: DVP) and Astron (ASX: ATR) each losing more than 11%.

Oil stocks also retreated, even as Brent crude held near US$65.67 per barrel, with the Energy Index down 2.26%.

Tech sector meltdown

The All Technology Index slumped 1.07%, driven by steep losses in market heavyweights.

Wisetech Global (ASX: WTC) sank 15.5% to $71.84 after traders took profits from its recent highs, while Novonix (ASX: NVX) slid 12% amid renewed volatility in the battery tech segment.

Smaller names such as Weebit Nano (ASX: WBT) bucked the trend, climbing 6.8% following upbeat sentiment around semiconductor innovation.

Banks and consumer stocks provide support

The market’s saving grace came from the financial and discretionary sectors.

Financials gained 1.49%, buoyed by a 1.64% lift in the ASX 200 Banks Index, with Commonwealth Bank (ASX: CBA) and Westpac (ASX: WBC) advancing ahead of Bank of Queensland’s (ASX: BOQ) upcoming dividend.

Consumer discretionary names also rallied, with the sector up 1.63%, led by Domino’s Pizza Enterprises (ASX: DMP), which soared 17.4% to $18.13 after delivering a stronger-than-expected trading update.

Eagers Automotive (ASX: APE) gained 5.1%, while Steadfast Group (ASX: SDF) climbed 4.7%.

“The rebound in consumer spending post-winter lull is encouraging,” said Shane Oliver, AMP Chief Economist. “However, inflationary stickiness and rate sensitivity remain key headwinds heading into the festive quarter.”

Health care and industrials steady the ship

The Health Care Index fell 0.25%, dragged down by CSL (ASX: CSL), which plunged 14.8% amid concerns over margin pressures.

Elsewhere, industrials and utilities edged higher, rising 0.38% and 1.06% respectively, as investors sought defensive exposure.

The Telecommunication Index also advanced 1.11%, aided by gains in Telstra (ASX: TLS) and TPG Telecom (ASX: TPG).

Gold cools, oil steadies, and volatility stays low

Gold prices hovered just under US$4,000/oz, easing slightly as investors rotated out of safe havens. Silver fell 0.17%, while Brent crude and WTI were largely unchanged, each up about 0.07%.

The Australian dollar strengthened marginally to US$0.6557, while the Volatility Index (VIX) remained low at 11.3, signaling continued investor calm despite sector churn.

IPO and dividend radar

New listings continued on the ASX, with Golden Globe Resources (ASX: GGR) and Sentinel Metals (ASX: SNM) debuting today, both priced at $0.20 per share.

Dividend investors are also watching the calendar, with Bank of Queensland (ASX: BOQ), Autosports Group (ASX: ASG), and Waterco (ASX: WAT) among companies going ex-dividend this week.

Market outlook: Tech wobble or healthy correction?

While the overall market drifted lower, analysts said today’s decline appears more like a “rotation reset” than a broader sell-off.

“After weeks of relentless gains, the ASX is taking a well-earned breather,” said Sarah Hunter, RBA Assistant Governor (Economic), during a panel discussion in Sydney. “The domestic economy remains resilient, though global headwinds and commodity volatility continue to shape investor behaviour.”

With volatility subdued and Wall Street’s strength intact, traders expect near-term sentiment to remain constructive — albeit with a cautious bias toward defensives and dividend payers.