Index Update: The S&P/ASX 200 edged lower on Tuesday, closing down 3.70 points to 9,022.30, as renewed concerns around the impact of artificial intelligence triggered the selling in technology stocks. Despite the modest decline, the benchmark index remains up 0.71% over the past five days and sits 1.05% below its 52-week high, indicating underlying resilience in the broader market. Sector performance was mixed, with 6 of the 11 sectors finishing in positive territory. Energy led the gains, rising 1.68% on the day and 5.14% over the past five sessions, making it the standout performer. Market breadth, however, was weaker overall, with 81 stocks advancing, 112 declining, and 5 unchanged, reflecting the drag from the technology segment.

Macro Update: Japan could face higher U.S. tariffs under a new import duty framework, with Tokyo seeking treatment equal to last year’s bilateral trade agreement. According to Reuters, officials said there are no plans to renegotiate the deal ahead of Prime Minister Sanae Takaichi’s visit to Washington next month. Trade minister Ryosei Akazawa reaffirmed the pact’s implementation, noting some exports may still be subject to increased levies while maintaining that the agreement remains mutually beneficial.

Top Market Movers: Liontown Resources (ASX:LTR) surged to AUD 1.815, up AUD 0.145 (8.68%), leading the gains, followed by Viva Energy Group (ASX:VEA) at AUD 1.870, rising AUD 0.140 (8.09%), and PLS Group (ASX:PLS), which advanced AUD 0.350 (8.01%) to AUD 4.720. On the downside, ARB Corporation (ASX:ARB) tumbled to AUD 21.360, down AUD 3.210 (13.07%), Austal (ASX:ASB) fell 12.48% to AUD 4.910, and SiteMinder (ASX:SDR) declined 11.71% to AUD 2.940.

Commodity Update: The U.S. dollar remained subdued on Tuesday as Asian markets assessed renewed volatility surrounding President Donald Trump’s tariff stance and its implications for global trade. Gold eased 0.32% to USD 5,208.50 after touching a three-week high, pressured by dollar strength despite geopolitical tensions. Silver gained 0.70% to USD 87.18, copper rose 2.37% to USD 13,151.10, while Brent crude slipped 0.10% to USD 71.40 amid U.S.-Iran talks uncertainty.

Our Stance: The S&P/ASX 200 slipped 3.70 points to 9,022.30, weighed down by technology stocks as AI-driven uncertainty sparked fresh selling, although the index remains up 0.71% over five days and just 1.05% below its 52-week high. Energy outperformed, while market breadth stayed negative. Japan’s request for tariff parity with the U.S. added to the cautious macro tone. Liontown, Viva Energy, and PLS Group led gains, while ARB, Austal, and SiteMinder declined sharply. Commodities were mixed, with copper and silver stronger and gold easing. It would be wise to maintain a cautiously constructive view and expect tech-led volatility to persist in the near term.

In its latest trading session, the S&P/ASX 200 eased 3.70 points, forming a small bearish candlestick on rising volume — a combination that reflects heightened investor caution and signals lingering short-term weakness. The uptick in trading activity alongside modest losses suggests some distribution, though not yet a decisive breakdown. Technically, the index continues to trade above its 21-period Simple Moving Average on the daily chart, which remains a key near-term support level. Immediate support is positioned around 8,970.50, and holding above this zone will be crucial to stabilising sentiment and limiting further downside pressure. On the weekly timeframe, the index remains comfortably above its 50-period SMA, preserving a constructive medium- to long-term trend bias.