The S&P/ASX200 fell 29.1 points on Tuesday, down 0.33 per cent, to 8,787, as the broader All Ordinaries lost 42.9 points, or 0.48 per cent, to 8,988.3.
"The ASX 200 wiggled through most of Tuesday's session before slipping into the afternoon, as early optimism gave way to caution," Vantage senior market analyst Hebe Chen told AAP.
"Easing Middle East tensions and lower oil prices helped at the open, but investors shifted focus back to Australian inflation data and Reserve Bank rate risk, with weakness in tech and materials outweighing strength in banks."
Australia's mining segment has dropped for seven of the past nine sessions, as global growth concerns and a stronger greenback hit metals prices.
"The current funk may last in the near term as markets price in softer global demand, a firmer US dollar and lower geopolitical risk premiums - all pointing to a cloudier outlook for miners," Ms Chen said.
BHP and Fortescue both lost ground as iron ore futures fell to 16-week lows and as copper prices tumbled 2.5 per cent during the session.
Gold stocks were a sea of red as the precious metal buckled under the weight of an increasingly hawkish US interest rate outlook.
The precious metal is trading hands at $US4,116 ($A5,916) an ounce, on par with its price in late November 2025.
IT stocks have also fallen sharply, after US tech stocks slumped when SpaceX shares ran into gravity, and as South Korea's technology and semiconductor-dominated KOSPI index lost more than seven per cent in two sessions, as traders weigh AI hype against dizzying technology valuations.Â
The fall in growth stocks came as interest rate markets upped their bets on US interest rate hikes, now tipping a 40 per cent chance of an increase as early as July.
The repricing sent the greenback higher against the major currencies, the Australian dollar now buying 69.53 US cents, down from 70.04 US cents on Monday at 5pm.
The heavyweight financials sector helped balance some of the losses, helping the segment clock its highest close since before the federal budget, IG market analyst Tony Sycamore said.
"Markets appear to have taken some comfort from the government's revised tax package announced last week, which includes several important carve-outs," he said.
These included lifting the small business turnover threshold for capital gains tax concessions from $2 million to $10 million.
In company news, WiseTech shares tanked to five-year lows after announcing it wasn't aware of a reported federal probe into alleged improper conduct by billionaire founder and executive chair Richard White.
Mineral sands miner Iluka Resources was the top-200's worst performer, tumbling by more than a tenth despite striking a 10-year offtake agreement with a global automotive company.
ON THE ASX:
* The S&P/ASX200 fell 29.1 points, or 0.33 per cent, to 8,787
* The broader All Ordinaries lost 42.9 points, or 0.48 per cent, to 8,988.3
One Australian dollar trades for:
* 69.53 US cents, from 70.04 US cents at 5pm AEST on Monday
* 112.40 Japanese yen, from 113.27 Japanese yen
* 60.86 euro cents, from 53.02 euro cents
* 52.55 British pence, from 53.02 British pence
* 122.28 NZ cents, from 122.25 NZ cents
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