Wall Street retreats after strong run
US markets pulled back on Tuesday, ending a six-day winning streak for the S&P 500 and signalling investor caution as recent gains ran out of steam. The S&P 500 slipped 0.39% to close at 5,940, while the Nasdaq dipped 0.38%, and the Dow Jones fell by 115 points to finish at 42,677.
Tech stocks led the decline, with Nvidia down 0.9%, and further losses for Apple, Microsoft, AMD, and Meta. The tech sector dropped 0.5% overall as traders locked in profits after a blistering rally that saw the S&P 500 rise more than 20% since April.
Tesla edges higher, Trump tax plan hits resistance
One standout was Tesla, which rose 0.5% after Elon Musk confirmed he intends to stay on as CEO for at least five more years.
Meanwhile in Washington, President Trump’s sweeping tax bill faced fresh hurdles as a group of Republican lawmakers continued to oppose a cap on state and local tax deductions. Trump failed to win them over during Capitol Hill meetings, threatening the passage of the bill ahead of Memorial Day.
RBA cuts rates, signals more to come
Back home, the Reserve Bank of Australia cut interest rates by 25 basis points, lowering the cash rate to 3.85%—its second reduction in this easing cycle. The RBA cited easing inflation, softer wage growth, and tariff-related risks as key factors behind the decision.
Chief Economist at AMP, Dr Shane Oliver, expects further cuts in August, November, and February, potentially bringing rates down to 3.1%. The cuts are aimed at supporting growth, which is projected to lift modestly to 1.8% this year.
Opposition in turmoil after Coalition split
And finally, a major shake-up in Canberra: the Nationals have walked away from their 80-year alliance with the Liberal Party, refusing to join a new Coalition after the election loss. Nationals leader David Littleproud cited unresolved policy demands around nuclear energy, regional funding, and supermarket reform.
With the split, the Liberals remain the formal opposition, while the Nationals lose shadow cabinet roles and face life as a minor party.
Commodities and the dollar
Brent crude is trading 0.14% higher at US$65.63 a barrel.
WTI crude is trading 0.21% lower at US$62.56 a barrel.
Spot gold is trading flat at US$3,290.21 an ounce.
Gold futures (COMEX) are trading 1.58% higher at US$3,284.60 an ounce.
One Australian dollar is buying 64.24 US cents.
Futures
The SPI futures are pointing to a 51 point rise.
