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The interest-rate sensitive technology sector (down 2.2 per cent) was among the worst performers, as shares in WiseTech fell 5.2 per cent and AI researcher TechnologyOne dropped 2.3 per cent.
The healthcare sector lost 1.6 per cent, dragged lower by losses in Pro Medicus shares (down 5.3 per cent), hearing implants maker Cochlear (down 2.9 per cent) and Telix Pharmaceuticals (down 3 per cent).
Three of the four big banks ended in the red, including the country’s biggest bank, CBA, which saw its shares slip 0.9 per cent.
The lowdown
Capital.com senior financial analyst Kyle Rodda said the ASX 200 struggled against stubborn expectations of interest-rate hikes from the Reserve Bank. “Tech has underperformed, while coal stocks have surged and supported the market, along with some other miners, thanks to production disruptions at Anglo America’s Queensland mine, along with the weaker dollar,” he said.
On Wall Street on Friday, a flurry of late selling left the benchmark S&P 500 Index 0.4 per cent lower to end the week in the red. The Nasdaq Composite index fell 0.7 per cent and the Dow Jones Industrial Average 0.1 per cent.
A pullback in big tech stocks – major winners in the market’s record-breaking run – weighed on the market. Apple shares fell 1.6 per cent, Microsoft lost 1.3 per cent and Meta ended 3 per cent lower.
Jerome Powell, chairman of the US Federal Reserve, which aims to slow economic growth enough to cool inflation, but not so much that the economy slips into a recession.Credit: Bloomberg
The late-afternoon burst of selling reflected traders taking profits, said Ross Mayfield, investment strategy analyst at Baird.
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The market headed higher in early trading following the release of a closely watched report that showed US inflation continues to ease. Investors are hoping that cooling inflation will prompt the Federal Reserve to start cutting interest rates.
Consumer prices rose 2.6 per cent in May, compared with a year ago, according to the latest personal consumption expenditures index. That signalled continued easing from a 2.7 per cent reading in April and is sharply lower than the peak reading of 7.1 per cent two years ago.
The S&P 500 closed out its final trading day of June with a 3.5 per cent gain for the month. The index is up about 14.5 per cent so far this year.
The Nasdaq gained about 6 per cent for the month and is up 18.1 per cent this year.
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With AP
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