Index Update: The S&P/ASX 200 advanced 43.50 points, or 0.50%, to 8,806.00, moving back above its 200-day moving average. Despite Friday's rebound, the benchmark index has declined 0.43% over the past five trading sessions and remains 4.31% below its 52-week high.

Market breadth remained mixed, with more sectors finishing in negative territory than positive, even as the benchmark index ended higher.

Materials emerged as the standout performer, climbing 2.32% and rebounding from recent weakness, although the sector remains 4.41% lower over the past five days. A-REITs (+0.59%) and Financials (+0.55%) also posted gains, providing additional support to the broader market.

On the downside, Health Care recorded the sharpest decline, falling 1.96%, followed by Consumer Discretionary (-1.13%), Telecommunication Services (-0.83%), Information Technology (-0.60%), Consumer Staples (-0.50%), Industrials (-0.39%), Utilities (-0.33%), and Energy (-0.22%), reflecting cautious investor sentiment outside the resources sector.

Macro Update: The United States has carried out a series of airstrikes on Iran following Iranian attacks on vessels in the Strait of Hormuz, marking the most significant breach of the 17 June Memorandum of Understanding. The escalation comes as US President Donald Trump declared that the ceasefire, first established on 8 April, is over. The renewed hostilities have raised concerns that the truce may collapse entirely, increasing the likelihood of a prolonged conflict between the two countries.

Top Market Movers: Among the top gainers, Silex Systems Ltd (ASX:SLX) surged 9.41% to AUD 5.70, followed by Deep Yellow Ltd (ASX:DYL), which climbed 7.43% to AUD 1.445, while Mesoblast Ltd (ASX:MSB) advanced 6.67% to AUD 2.24. On the downside, Pro Medicus Ltd (ASX:PME) fell 6.35% to AUD 197.07, Electro Optic Systems Holdings Ltd (ASX:EOS) declined 6.24% to AUD 8.41, and Austal Ltd (ASX:ASB) dropped 5.34% to AUD 3.72.

Commodity Update: The U.S. dollar weakened on Friday as easing inflation concerns, supported by lower oil prices, and the latest Federal Reserve meeting minutes highlighted a balanced debate among policymakers regarding the future path of interest rates. Gold declined 0.10% to USD 4,136.70 per ounce, while silver advanced 0.12% to USD 60.81 per ounce. Copper gained 0.09% to USD 13,531.00 per tonne. Meanwhile, Brent crude oil slipped 0.30% to USD 76.07 per barrel as crude exports through the Strait of Hormuz remained largely uninterrupted despite ongoing U.S.-Iran tensions.

Our Stance: The ASX 200's rebound above its 200-day moving average reflects resilience, but underlying market participation remains uneven as gains were concentrated in materials while most sectors finished lower. Persistent geopolitical tensions in the Middle East and evolving expectations for U.S. interest rates are likely to keep investors cautious in the near term. Commodity price movements, particularly across metals and energy, may continue to influence market direction. A broader recovery in sector participation, supported by improving macroeconomic visibility and stable global conditions, could be important for sustaining the index's upward momentum.

The S&P/ASX 200 gained 43.50 points in the latest trading session, forming a bullish candlestick that reflects renewed buying interest. From a technical perspective, the index continues to trade comfortably above its 50-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing positive trend. Immediate support is located near 8,730.50, and maintaining this level would preserve the broader bullish market structure while encouraging further upside momentum. A sustained rebound from support could pave the way for a retest of recent highs and potentially extend the ongoing advance. Conversely, a decisive break below the 8,730.50 support level would weaken the near-term technical outlook, increase selling pressure, and raise the likelihood of a deeper corrective pullback.