SYDNEY, June 7, 2026, 03:01 AEST
Australian stocks ended lower ahead of the long weekend, as the S&P/ASX 200 dropped for the week—its first weekly decline in three weeks. Banks and miners weighed the index down on Friday.
The index gave up 61 points, or 0.7%, settling at 8,625.10. That put losses for the week at 1.2%. Share trading on the ASX stays closed Monday for the King’s Birthday holiday. The next local session is set for Tuesday.
Timing was key. The local market wrapped up trading before a steep slump hit Wall Street, with the Nasdaq down 4.18%, the S&P 500 losing 2.64%, and the Dow off 1.35%. A strong U.S. jobs report renewed rate fears. “The dam just broke” in tech and chip stocks that have been priced for perfection, said Ryan Detrick, chief market strategist at Carson Group. Reuters
S&P/ASX 200 is Australia’s main large-cap index and floats with the market value of the shares actually trading, so companies with more shares on the open market have heavier index weights. Big banks and miners have an outsize impact.
BHP closed down 2.48% at A$61.24 on Friday, with Rio Tinto off 1.86% to A$184.58 and Fortescue falling 2.33% to A$20.53 as iron ore futures posted their fourth straight weekly loss. CBA slid 1.73% to A$160.90, while Westpac dropped 1.22% to A$34.81. “Materials were the biggest drag,” said Global X senior investment strategist Billy Leung. Healthcare showed gains, with CSL up 5.75%, Pro Medicus up 4.03% and Megaport up 11.26%. News
ASX trading turned midweek after a steady Monday helped by technology stocks and record highs for BHP and Rio Tinto on Wednesday. That changed Thursday when the index dropped 1.13% as iron ore names and geopolitics weighed on cyclicals.
Australia’s latest GDP numbers were mixed. Output grew 0.3% in the March quarter, short of the 0.5% forecast as exports took a hit from poor weather and weak net trade pulled the figure down. “The headline was soft,” said Sunny Nguyen at Moody’s Analytics. Stephen Smith from Deloitte Access Economics called the “quality of growth” poorer. Reuters
Wage decision last week kept rate talk going. The Fair Work Commission said minimum and award wages will rise 4.75% from July 1, affecting about 2.8 million lower-paid workers. After that, swaps were pricing 23 basis points of extra tightening for 2026. Citi analysts said the decision backed their call for another Reserve Bank of Australia rate hike in August.
Megaport laid out details for investors today, signing four AI infrastructure deals totalling A$458.9 million and launching an A$827.3 million equity raising. The cloud networking company said funds will go to build an inference cloud, or computing power for running trained AI models. Hebe Chen at Vantage Markets called Megaport a “picks-and-shovels player.” Reuters reported the plan depends on Nvidia and AMD high-performance chips. Reuters
AI-linked stocks haven’t been enough to lift the market out of its old-economy slump. IG market analyst Tony Sycamore said the ASX 200 is “continuing to lag global peers” as softer materials and quiet financials drag on gains in tech. Looking to the next few days, markets face Westpac consumer confidence, NAB business confidence, inflation numbers out of China, U.S. CPI and the European Central Bank’s decision. IG
Downside isn’t certain. If U.S. inflation softens, oil stays calm, and China demand steadies, miners and rate-sensitive stocks might get a lift. But if inflation heats up again or energy worries flare from the Gulf, bond yields could rise, and banks, retailers, and high-valuation tech stocks would be at risk.
Local signals are mixed. The index dropped and fewer names led, with Wall Street’s late slump leaving traders without a strong cue. But more stocks gained than lost ground on Friday, pointing to money still rotating in the background.
