The benchmark S&P/ASX200 fell 11.5 points on Friday, down 0.13 per cent to 8,958.3 as the broader All Ordinaries lost 12.3 points, or 0.13 per cent, to 9,264.3.
The top-200 was down roughly 0.4 per cent for the week, as data-starved investors grappled with the partial US government shutdown, and as local inflation concerns weighed on hopes of further Reserve Bank interest rate cuts.
"While shares remain strong, the risk of a correction remains high given stretched valuations and numerous potential triggers," AMP chief economist Shane Oliver said.
"However, our six-to-12-month view remains positive for shares as Trump continues to pivot towards more market-friendly policies ahead of the mid-terms next year, the Fed cuts rates further and other central banks including the RBA continue to cut, albeit to varying degrees."
Only three sectors finished lower on Friday, but a 2.2 per cent sell-off in raw materials stocks levelled gains elsewhere as large-cap miners, gold plays and mixed producers tumbled.
BHP shares fell 2.1 per cent to $42.22, while gold names like Northern Star, Evolution and Newmont lost between two and 3.8 per cent.
Gold itself is trading roughly two per cent short of Thursday's record peak of $US4,059 ($A6,1280) an ounce, and the ASX's gold sub-sector is still up 93 per cent in 2025.
Rare earths miners Iluka and Lynas each fell more than three per cent after rallying earlier in the week on the back of Beijing's export control announcements.
Financials performed well on Friday to narrow the sector's losses to 0.3 per cent for the week, led by 0.6 per cent gains in NAB and CBA.
Energy stocks fell 0.7 per cent and lost 1.5 per cent for the week, with oil prices edging lower as Israeli authorities approved the first stage of a Gaza peace deal.
Woodside shares lost 1.2 per cent to $22.55, and coal producers were mixed as the Queensland government flagged extensions to its coal-fired power stations.
IT stocks outperformed the market, rallying 1.1 per cent with strong showings by Xero, Technology One, Life360 and NextDC, while segment giant WiseTech edged higher after plunging almost five per cent since Monday.
Consumer discretionary stocks caught a bid after a tough week, with JB Hi-Fi jumping 2.3 per cent and Temple and Webster rallying 5.7 per cent on Friday.
The Australian dollar is buying 65.65 US cents, down from 66.03 US cents on Thursday at 5pm, after the greenback strengthened during the week amid potential leadership changes in France and Japan.
Bitcoin's price has continued to chop below all-time highs reached this week and is trading at $US121,585 ($A185,154), supported by currency debasement trades.
Looking ahead, the Reserve Bank will release its September meeting minutes on Tuesday, and Thursday's jobs data could give a hint at the road ahead for interest rates before the all-important quarterly inflation print later in October.
ON THE ASX:
* The S&P/ASX200 lost 11.5 points, or 0.13 Â per cent, to 8,958.3
* The broader All Ordinaries dropped 12.3 points, or 0.13 per cent, to 9,264.3
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 65.65 US cents, from 66.03 US cents on Thursday
* 100.33 Japanese yen, from 100.79 Japanese yen
* 56.75 euro cents, from 56.74 euro cents
* 49.34 British pence, from 49.26 British pence
* 114.12 NZ cents, from 113.94 NZ cents
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