Bondi Beach terrorist attack
We are deeply saddened by the terrorist attack at Bondi Beach on Sunday. At least 16 people were killed and 40 people were injured after two armed attackers opened fire near Bondi Pavilion shortly after 6.40pm. One attacker died at the scene and the other remains in a critical condition in hospital. The tragedy has affected so many people in our community and our thoughts, prayers and deepest sympathies are with all those impacted by the devastating attack.
US markets fall as rotation out of tech continues
US equities finished lower on Friday as investors continued rotating out of technology stocks and into more defensive and value-oriented parts of the market.
The S&P 500 fell 1.07% to close at 6,827.41, while the Nasdaq Composite dropped 1.69% to 23,195.17, weighed down by renewed selling across large-cap technology. The Dow Jones Industrial Average declined 245.96 points, or 0.51%, to 48,458.05, despite touching a fresh intraday all-time high earlier in the session. Small caps also eased, with the Russell 2000 down 1.51% to 2,551.46, though it too reached a record during the day.
Broadcom slide pressures AI-linked names
The pullback in broader markets was driven largely by a sharp fall in Broadcom, which plunged more than 11%. The decline came despite the company beating fourth-quarter expectations and issuing a strong outlook for the current quarter, including guidance that artificial intelligence chip sales could double. Investor concerns around potential margin compression appeared to outweigh the upbeat forecast.
Losses in Broadcom spilled over into other AI-exposed names, with stocks such as AMD, Palantir Technologies and Micron also finishing lower. The continued pressure on the AI trade reinforced a broader shift away from high-growth technology stocks that have led markets for much of the year.
Value sectors attract renewed interest
While technology lagged, several value-oriented sectors saw modest gains. Financials, healthcare and industrials outperformed, helping cushion losses in the broader market. Stocks such as Visa, Mastercard, UnitedHealth Group and GE Aerospace were among the better performers, highlighting the ongoing rotation into companies with more stable earnings profiles.
The move followed a similar pattern on Thursday, when investors took profits in growth stocks and rotated into cyclical and value names after the Federal Reserve delivered its third interest rate cut of the year.
Weekly performance shows diverging trends
For the week, the S&P 500 fell 0.6% and the Nasdaq lost 1.6%, reflecting sustained weakness in technology shares. In contrast, the Dow gained 1.1%, supported by strength in non-tech sectors. Small-cap stocks continued to outperform, with the Russell 2000 rising 1.2% for the week after recording fresh record highs.
ASX set to open lower
The Australian sharemarket is expected to open weaker, with ASX 200 futures down 0.6% at 8,659.
Investor attention is turning to long-awaited US non-farm payrolls data for October and November, due for release on Wednesday AEDT after delays caused by the US government shutdown. The figures arrive at a critical time, with signs emerging that job creation is slowing.
Economists expect US unemployment to hold at 4.4% in November, while payroll growth is forecast to remain subdued at around 50,000 jobs. The data will be closely watched for clues on whether the Federal Reserve is nearing the end of its easing cycle, particularly as the Reserve Bank of Australia is expected to move toward tightening next year.
