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The S&P/ASX 200 traded 39 points lower to close at 8,889.2 on Thursday, snapping a two-day winning streak as global risk sentiment weakened. Investors pulled back after a sharp overnight sell-off tied to US earnings, pushing the benchmark index down 0.43% by the close.
The decline followed mixed leads from Wall Street, where gains in the Dow Jones failed to offset continued pressure on technology stocks.
AMD Earnings Shock Hits Global Sentiment
Market sentiment shifted after Advanced Micro Devices shares plunged 17.3% to $200.19 following its earnings release. Investors reacted to weaker-than-expected guidance for the first quarter of fiscal 2026, which raised doubts about the pace of artificial intelligence-driven data centre expansion.
That reassessment quickly spread across global markets, including Australia, where growth-linked sectors faced renewed selling pressure.
Uranium Weakness Drags Materials Lower
The materials sector led losses on the ASX after uranium futures dropped 5.09% overnight to about US$86 per pound. Prices now sit roughly 15% below last week’s peak, triggering aggressive selling across uranium-linked equities.
Bannerman Energy slid 10.54% to $3.81, while Paladin Energy fell 9.87% to $12.24. Boss Energy declined 8.74% to $1.59 as investors reassessed demand expectations tied to data centre energy needs.
Source: X
Energy Stocks Slide on Geopolitical Shifts
Energy shares also retreated after reports confirmed that US-Iran nuclear talks would resume on Friday, with the venue shifting from Turkey to Oman. The renewed diplomatic engagement weighed on oil price expectations, pressuring local producers.
Beach Energy dropped 3.78% to $1.20, Santos eased 0.71% to $6.99, and Woodside slipped 0.25% to $25.78 as traders trimmed exposure.
Precious Metals Volatility Returns
Volatility returned to precious metals markets after a brief period of calm. Silver prices plunged as much as 15%, touching $73.50, while gold fell 3.3% to a low of $4,789. Those moves erased much of the previous session’s gains and dragged ASX-listed miners lower.
Silver Mines sank 8.16% to $0.22, Genesis Mining fell 6.29% to $6.85, and Resolute Mining slid 6% to $1.25. Newmont declined 5.64% to $162.17.
Rare Earths Reverse Earlier Gains
Rare earth stocks reversed sharply after strong gains earlier in the week. Selling followed comments from US Vice President JD Vance outlining plans for a preferential trade bloc with allies.
The proposal includes coordinated price floors aimed at shielding non-Chinese suppliers. Investors questioned whether such measures could cap upside pricing. Metallium dropped 10.58% to $0.84, while Lynas Rare Earths fell 6.84% to $14.91.
Tech Shares Show Selective Resilience
Despite global tech weakness, the ASX technology sector held in positive territory as bargain hunters stepped in after steep losses earlier in the week. Seek rose 2.54% to $19.75, Block gained 2.48% to $81.75, and TechnologyOne added 2.16% to $23.14. Could this signal selective confidence amid broader volatility?
Sector Performance Paints a Mixed Picture
By the close, three of the ASX’s 11 sectors finished lower, led by materials, energy, and gold stocks. Consumer discretionary, financials, and staples shares posted gains, helping limit broader index losses.
The session highlighted how global earnings shocks and commodity swings continue to steer Australian markets, even as domestic sectors show pockets of resilience.
