The S&P/ASX200 fell 9.1 points by midday on Friday, down 0.1 per cent, to 9,077.1, as the broader All Ordinaries lost 13.6 points, or 0.15 per cent, to 9,303.
"After briefly reaching a record high of 9118 in the previous session, the ASX enters today's trade looking to stabilise near those levels," Moomoo dealing manager Chris Strazzeri said.
"With the index testing peak territory, the focus shifts to whether sector support is strong enough to hold the market up amid geopolitical uncertainty."
Six of 11 local sectors were trading lower by lunchtime, with significant losses in IT stocks, consumer cyclicals and staples, communications and health care.
Utilities companies continued to perform well, up 0.7 per cent, as Origin and APA Group forged ahead.
The co-heavyweight sectors of financials and raw materials edged a modest 0.2 per cent higher, easing off after a strong week for both.
The big four banks were mixed, with ANZ and Westpac pushing 0.7 per cent higher, while CBA traded flat at $178.41 and NAB slipped 0.6 per cent to $48.01 as its post-earnings rally lost momentum.
QBE was the best of the major insurers, surging more than seven per cent higher after its first-half net profit swelled 21 per cent to $US2.2 billion ($A3.1 billion).
In basic materials, BHP grew one per cent to $53.76 a share, brushing against its recent record peak as Rio eased from its post-earnings rally and Fortescue gained 0.5 per cent.
Behind the barrage of earnings and eye-watering profits for the mega miners, iron ore futures have quietly slipped to $US98.25, their lowest price since July 2025.
Gold stocks have broadly been higher, with the exception of US-headquartered Newmont, which shaved 2.4 per cent to $172.03 despite beating full-year earnings expectations as its fourth quarter profit fell compared to the equivalent period in 2024.
Evolution and Northern Star both traded higher, as spot gold reclaimed a key psychological level to trade hands at $US5,010 ($A7,104) an ounce.
The energy sector traded just below flat, despite oil prices spiking to six-month highs as concerns of potential conflict between the US and Iran grew.
Woodside, Santos and other fossil fuel producers edged lower, while uranium stocks like Paladin and Deep Yellow rallied.
Consumer discretionary stocks have continued their rough week, slipping 1.2 per cent on Friday, with some notable post-results sell-offs.
Mexican-themed fast food chain and former market darling Guzman y Gomez tumbled 11.7 per cent after missing earnings expectations, as the company's US expansion weighed on margins.
Consumer staples fell 1.6 per cent, as chicken producer Inghams slumped more than 15 per cent after slashing its full-year guidance range to $180-$200 million from $215-$230 million.
Health care stocks edged lower despite strong performances from Telix Pharmaceuticals (+7.5 per cent) and Ramsay Health Care (+2.5 per cent) on the back of interim results and strategic updates.
In other news, shares in shipbuilder Austal jumped more than five per cent after securing a $4 billion contract with the Commonwealth.
The Australian dollar was buying 70.55 US cents, roughly on par with its level of 70.54 US cents at 5pm on Thursday.
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