Mining strength offsets banking weakness

The Australian share market closed relatively flat, with the S&P/ASX 200 Index edging down just 1.9 points to finish at 8595.8, narrowly missing a record high. A sharp rally in BHP Group Limited (ASX: BHP), which surged over 5 per cent to $39.27, helped offset a broad decline in the financial sector. The gains in mining followed a 2.5 per cent rise in iron ore prices to $95.55 per tonne, buoyed by supportive rhetoric from Chinese authorities aiming to stabilise the steel market. Other mining heavyweights such as Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) also climbed 1.8 per cent each, while lithium stocks like Mineral Resources Limited (ASX: MIN), Pilbara Minerals Limited (ASX: PLS), and Liontown Resources Limited (ASX: LTR) posted significant gains.

Banks and retailers drag amid rotation

Despite strong mining support, financial stocks dragged on the index as investors rotated out of banking. Commonwealth Bank of Australia (ASX: CBA) fell 2.2 per cent to $179.69, while National Australia Bank Limited (ASX: NAB) and Westpac Banking Corporation (ASX: WBC) also declined. Retailers, which had earlier rallied on speculation of a potential interest rate cut from the Reserve Bank of Australia, reversed course, with JB Hi-Fi Limited (ASX: JBH), Wesfarmers Limited (ASX: WES), Harvey Norman Holdings Limited (ASX: HVN), and Myer Holdings Limited (ASX: MYR) all retreating. Meanwhile, GemLife, a new housing developer, debuted strongly on the ASX, rising 4.1 per cent to $4.33. Notable corporate moves included Pro Medicus Limited (ASX: PME) jumping 7.8 per cent on significant US contract wins and Domino’s Pizza Enterprises Limited (ASX: DMP) rebounding after executive remarks. In contrast, G8 Education Limited (ASX: GEM) dropped 7.4 per cent amid legal issues involving a former employee.

Wall Street rises on strong jobs data and tech rally

In the United States, equity markets climbed sharply as better-than-expected jobs data and strong tech performance lifted sentiment. The S&P 500 Index (NYSE: SPX) and Nasdaq 100 Index (NASDAQ: NDX) both closed at record highs, boosted by a 147,000 rise in nonfarm payrolls and a surprise drop in unemployment to 4.1 per cent. Leading the gains were technology firms, with NVIDIA Corporation (NASDAQ: NVDA) and Synopsys Inc. (NASDAQ: SNPS) rising 1.3 per cent and 4.2 per cent respectively, amid positive momentum in AI earnings and eased export restrictions. Additional support came from optimism around a US-Vietnam trade agreement and the near-final approval of President Trump’s $3.4 trillion fiscal package. Datadog Inc. (NASDAQ: DDOG) jumped 10 per cent following its inclusion in the S&P 500. US markets will close early ahead of the Independence Day holiday.