SYDNEY, July 17, 2026, 10:00 AEST
- SPI futures pointed to a 0.2% fall at the start of cash market trading.
- The Nasdaq fell 1.47%, although technology stocks make up a small portion of the Australian market.
- Early estimates indicate banks countered 72% of the materials sector decline on Thursday.
Australian shares started Friday with a slight downward tilt. SPI futures indicated a 0.2% drop as trading commenced. The initial direction was still tentative.
U.S. tech shares delivered an overnight jolt, with Nasdaq sliding 1.47% and the semiconductor index tumbling 4.3%. The S&P 500 also declined, shedding 0.51%.
The composition of Australia’s index is distinct, with financials and materials together accounting for close to 59% of the benchmark. As of the end of March, technology made up roughly 2%. By contrast, U.S. chipmakers now make up more than 20% of the S&P 500.
On Thursday, the S&P/ASX 200 (INDEXASX:XJO) ended 0.4 point lower at 8,840.7. Eight sectors gained. Of the ASX 300 stocks, 165 finished higher while 108 declined.
| ASX sector | Index weight | Thursday move | Preliminary index-point effect |
|---|---|---|---|
| Materials | 25.6% | fell 1.58% | -35.8 |
| Financials | 33.3% | gained 0.88% | +25.9 |
| Total | 58.9% | — | -9.9 |
Initial calculations are based on Thursday’s closing prices, sector allocations, and the final moves in each sector. These figures do not account for changes in weight during trading hours or effects at the individual stock level.
Financial stocks offset approximately 72% of the losses in materials, while additional sectors contributed nearly 9.5 index points. As a result, the flat finish masked broader participation in the market.
BHP Group ASX:BHP lost 2.34% to close at A$59.14 on Thursday. For FY26, copper production declined by 3% to 1.953 million tonnes. The company projected FY27 output between 1.65 and 1.80 million tonnes, attributing the guidance to reduced grades at Escondida.
“The impact on the market following BHP’s production report has become widespread,” Moomoo strategist Michael McCarthy told AAP. Morningstar
BHP faced renewed disruption risk on Friday after 97.5% of high-voltage staff voted in favor of strikes. Thursday saw an eight-hour walkout at Port Hedland, which channels roughly $80 million in BHP iron ore shipments each day.
Banks were Thursday’s primary source of support. Commonwealth Bank of Australia ASX:CBA climbed 1.84% to A$173.13. National Australia Bank ASX:NAB gained 1.25%. AMP ASX:AMP surged 9.8% after forecasting first-half underlying profit at A$170–180 million.
“The performance is purely a result of how heavily weighted the chips are in the S&P 500,” stated Paul Nolte, strategist at Murphy & Sylvest. According to Nolte, Sydney approaches the calculation differently. Reuters
The key domestic event next week lands on Thursday, when June labour-force figures will be released at 11:30 AEST. Unemployment stood at 4.4% in May. The Reserve Bank is set to convene again on August 10–11.
Risks: Another surge in oil prices may lift inflation and prompt higher rate forecasts. Softer metals prices could further weigh on miners, while extended strikes risk intensifying BHP-focused concerns.
Markets are expected to start on a cautious note on Friday, though the day’s finish is likely to hinge on the performances of banks and BHP. Exposure to chip stocks remains minimal.
