Soft Friday locks-in poor week for local market

The S&P/ASX 200 Index (ASX: XJO), the Australian sharemarket’s benchmark, gave up 42.5 points, or 0.5 per cent, to 8,666.9 on Friday, marking a 1 per cent slide for the week – its worst weekly performance since a 3.9 per cent decline in the first week of April. The broader All Ordinaries Index (ASX: XAO) retreated 45.1 points, or 0.5 per cent, to 8,934.3 on Friday, to be down 0.8 per cent for the week.

Hawkish comments from Reserve Bank of Australia governor Michele Bullock on Thursday led to a shift in interest-rate cut expectations, with the market appearing to price in two full 25 basis-point cuts this year, possibly in August and November.

Six of the ASX’s 11 sectors finished lower and two closed higher on Friday, with industrials, telecommunications and utilities all effectively flat.

Banks weak, Newmont and Woodside surge

The big four banks continued to lose ground, with Westpac Banking Corporation (ASX: WBC) falling 26 cents, or 0.8 per cent, to $33.03; Australia and New Zealand Banking Group Limited (ASX: ANZ) slipping 22 cents, or 0.7 per cent, to $30.22; Commonwealth Bank of Australia (ASX: CBA) receding 60 cents, or 0.4 per cent, to $172.87; and National Australia Bank Limited (ASX: NAB) walking back 15 cents, also 0.4 per cent, to $37.51.

The big miners were also disappointing, with BHP Group Limited (ASX: BHP) sliding 80 cents, or 1.9 per cent, to $40.80; Fortescue Ltd (ASX: FMG) giving up 65 cents, or 3.4 per cent, to $18.35; and Rio Tinto Limited (ASX: RIO) subsiding $1.00, or 0.8 per cent, to $118.86. The goldminers were also mostly lower, with the exception being heavyweight Newmont Corporation (NYSE: NEM), which rose $3.50, or 3.8 per cent, after a solid quarterly report. Energy did well, largely on the back of Woodside Energy Group Ltd (ASX: WDS), which rose 94 cents, or 3.7 per cent, to $26.20. Santos Limited (ASX: STO) moved 8 cents, or 0.5 per cent, higher to $7.78.

Yawn, another record close for the S&P 500, Nasdaq

In the US, the broad S&P 500 Index (INDEXSP: .INX) advanced 25.29 points, or 0.4 per cent, to notch its 14th record close of the year at 6,388.64, with Friday marking a fifth consecutive day of closing records for the S&P 500. The tech-heavy Nasdaq Composite Index (INDEXNASDAQ: .IXIC) went one better, gaining 50.36 points, or 0.2 per cent, ending at 21,108.32 for its 15th record close in 2025. Both indices also touched fresh new all-time intraday highs during the trading day. The 30-stock Dow Jones Industrial Average (INDEXDJX: .DJI) added 208.01 points, or 0.5 per cent, to close at 44,901.92, a smidgen away from its record close of 45,014.04, achieved on December 4 last year.

All three major gauges finished the week with gains: the S&P 500 Index (INDEXSP: .INX) gained about 1.5 per cent; the Dow Jones Industrial Average (INDEXDJX: .DJI) posted a 1.3 per cent advance; and the Nasdaq Composite Index (INDEXNASDAQ: .IXIC) rose 1 per cent.

The indices were helped by what has been a strong second-quarter earnings season so far, including Alphabet Inc. (NASDAQ: GOOGL)’s better-than-expected report. Verizon Communications Inc. (NYSE: VZ) shares also jumped after the telecommunications company’s results surpassed expectations. For the week, Alphabet Inc. (NASDAQ: GOOGL) lifted 4 per cent and Verizon Communications Inc. (NYSE: VZ) put on 5 per cent. More than 82 per cent of the 169 S&P 500 Index (INDEXSP: .INX) companies that have reported to date have beaten Wall Street’s expectations, according to FactSet Research Systems Inc. (NYSE: FDS) data.