ASX weighed down by energy and banking sectors

The Australian sharemarket edged lower on Monday, dragged down by losses in the energy sector and major banks, despite strength in technology stocks. The S&P/ASX 200 Index (ASX: XJO) fell by 21.6 points to close at 8849.6, mirroring Wall Street’s decline last Friday. Eight of the 11 sectors ended in negative territory, with energy and financials leading the retreat. Woodside Energy Group Limited (ASX: WDS) dropped 2.7 per cent to $24.98 and Santos Limited (ASX: STO) slipped 1.2 per cent to $7.71 amid weaker oil price sentiment. Meanwhile, the big four banks also pulled the index down, led by Australia and New Zealand Banking Group Limited (ASX: ANZ), which fell 1 per cent. National Australia Bank Limited (ASX: NAB) declined 0.8 per cent, Westpac Banking Corporation (ASX: WBC) eased 0.6 per cent, while Commonwealth Bank of Australia (ASX: CBA) eked out a late 0.1 per cent gain.

Gold stocks retreat despite bullish outlook

Gold miners reversed course even as gold prices remained firm, driven by expectations of a US interest rate cut and ongoing geopolitical uncertainty. Evolution Mining Limited (ASX: EVN) lost 1.4 per cent, Newmont Corporation (ASX: NEM) shed 0.7 per cent, and Ramelius Resources Limited (ASX: RMS)fell 1.5 per cent. Despite gold’s 37 per cent rally year-to-date, some investors are engaging in profit-taking. According to the World Gold Council, global gold exchange-traded funds reached a record high of $US407 billion in assets under management. In contrast, Life360 Inc (ASX: 360) and Boss Energy Limited (ASX: BOE) topped the gainers list, each rising more than 6 per cent. Other standout performers included Rio Tinto Limited (ASX: RIO) and South32 Limited (ASX: S32), which provided some support to the index. However, BHP Group Limited (ASX: BHP) fell 0.6 per cent despite stable iron ore prices. Volatility also hit Woolworths Group Limited (ASX: WOW) and Coles Group Limited (ASX: COL) amid revelations of $1 billion in potential backpay liabilities.

Global markets eye US inflation data

Wall Street began the week positively as investors prepared for critical inflation data that could influence the US Federal Reserve’s rate decisions. The S&P 500 Index (NYSE: SPX) gained 0.2 per cent, the Nasdaq 100 Index (NASDAQ: NDX) rose nearly 0.5 per cent, and the Dow Jones Industrial Average (INDEXDJX: DJI) advanced by 114 points. Hopes for a rate cut were bolstered by softer US labor market data last week. Market participants are now closely watching upcoming Producer Price Index (PPI) and Consumer Price Index (CPI) reports. Leading the rally were technology firms including Amazon.com Inc. (NASDAQ: AMZN), Broadcom Inc. (NASDAQ: AVGO), NVIDIA Corporation (NASDAQ: NVDA), and Oracle Corporation (NYSE: ORCL). Meanwhile, Robinhood Markets Inc. (NASDAQ: HOOD) and AppLovin Corporation (NASDAQ: APP) surged after news of their inclusion in the S&P 500. On the downside, Apple Inc. (NASDAQ: AAPL) slipped 0.7 per cent and T-Mobile US Inc. (NASDAQ: TMUS) fell 3.9 per cent.