The S&P/ASX200 fell 3.7 points on Tuesday, down 0.04 per cent, to 9,022.3, as the broader All Ordinaries handed back 7.2 points, or 0.08 per cent, to 9,244.3.
Five of 11 local sectors ended the day lower, but a supersized 3.5 per cent slump in IT stocks weighed as concerns around artificial intelligence disruption dragged the segment to its lowest value since October 2023.
Miners and energy stocks ran in the other direction, thanks to a modest uptick in oil prices and as markets in China reopened after a bank holiday.
"Obviously, AI has turned into something that is a cause of concern and risk aversion, rather than something that is prompting FOMO (fear of missing out) and risk taking," he told AAP.
"But on the flipside we've got Chinese markets back online, and there seems to be a little bit of perkiness in commodity prices with the heavy hitters in the market doing some of that heavy lifting."
BHP shares topped $55 for the first time in history, before easing to $54.75 for a tidy 1.4 per cent gain, while Rio Tinto lost 1.1 per cent and Fortescue gained 1.1 per cent ahead of its half-year results announcement on Wednesday.
Gold miners eased from a promising start to a mixed finish, as the precious metal slipped to $US5,169 ($A7,324) an ounce.
Liontown was the top-200's best performer, with it and fellow lithium producer PLS each up more than eight per cent.
Energy stocks outperformed the broader market, thanks in part to a healthy 2.4 per cent surge in Woodside shares, after it touted record full-year production despite a drop in bottom-line and underlying profit.
Coal miners swung into the green during the session, while uranium stocks were mostly weaker or flat.
Consumer discretionary stocks remained under pressure amid a gloomy interest rate outlook and multiple earnings misses this season, the segment falling to 10-month lows.
Vehicle accessory company ARB was the top-200's worst performer, tanking 13 per cent after its first-half reported profit fell by more than a sixth.
Real estate trusts have also had a rough ride in the wake of the Reserve Bank's first interest rate hike in more than two years this month, down more than six per cent since the decision.
The heavyweight financials sector dipped 0.3 per cent, with mixed fortunes for the big four banks but a sharp dip in major insurers, as concerns about the potential for AI tools to disrupt the sector dragged names such as Suncorp (-0.9 per cent), IAG (-3.3 per cent) and QBE (-1.6 per cent) lower.
In earnings news, Southern Cross Media shares tumbled nine per cent after first-half cash earnings dipped 14.5 per cent, handing down results after the sudden exit of chief executive Jeff Howard on Monday night.
Industrials gained 0.5 per cent as Monadelphous Group rallied after it doubled its revenues in the first half to $95.2 million.
Fortescue, WiseTech, Tabcorp, Flight Centre and Domino's will hand down results on Wednesday.
The Australian dollar is buying 70.65 US cents, down from 70.74 US cents on Monday at 5pm, holding almost steady ahead of incoming January consumer price index figures.
ON THE ASX:
* The S&P/ASX200 fell 3.7 points, or 0.04 per cent, to 9,022.3
* The broader All Ordinaries lost 7.2 points, or 0.08 per cent, to 9,244.3
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 70.65 US cents, from 70.74 US cents at 5pm AEDT on Monday
* 109.62 Japanese yen, from 109.25 Japanese yen
* 59.97 euro cents, from 59.84 euro cents
* 52.38 British pence, from 52.32 British pence
* 118.50 NZ cents, from 118.19 NZ cents
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