Index Update: The Australian sharemarket finished lower on Tuesday, with the S&P/ASX 200 shedding 29.10 points, or 0.33%, to close at 8,787.00. Weakness in technology stocks weighed on sentiment as renewed concerns surrounding artificial intelligence and ongoing attention to US-Iran peace talks kept investors cautious. The benchmark index has declined 1.47% over the past five sessions and remains broadly flat for the year. Sector performance was mixed, with seven of the 11 sectors ending in negative territory. Financials led the gains, rising 0.64% on the day and advancing 1.11% over the last five trading sessions.

Macro Update: According to Media reports, Iran has agreed to allow United Nations nuclear inspectors back into the country under an agreement with the United States, according to US Vice President JD Vance. The deal also includes the reopening of the Strait of Hormuz and plans to ease sanctions on Iran’s oil exports. Officials from both sides reported progress after talks in Switzerland, while technical teams will continue working on implementation measures aimed at reaching a broader agreement within two months.

Top Market Movers: Telix Pharmaceuticals (ASX:TLX) led the gains on the ASX, rising AUD 0.350, or 2.463%, to close at AUD 14.560. NRW Holdings (ASX:NWH) added AUD 0.140, or 2.008%, to AUD 7.110, while Washington H. Soul Pattinson and Company (ASX:SOL) gained AUD 0.860, or 1.941%, to finish at AUD 45.150. On the downside, Iluka Resources (ASX:ILU) dropped AUD 0.880, or 10.825%, to AUD 7.250. Technology One (ASX:TNE) fell AUD 2.120, or 7.103%, to AUD 27.730, while Centuria Capital Group (ASX:CNI) declined AUD 0.143, or 6.573%, to AUD 2.030.

Commodity Update: The U.S. dollar surged to an over one-year high on Tuesday as growing expectations of a hawkish Federal Reserve outweighed easing geopolitical concerns and lower oil prices. Sterling remained in focus following developments surrounding British Prime Minister Keir Starmer’s resignation. Gold fell 1.02% to USD 4,159.20, while silver declined 3.51% to USD 63.29 and copper slipped 0.61% to USD 13,571.20. Brent crude oil gained 0.38% to USD 78.15 after the previous session’s sharp decline, as investors monitored U.S.-Iran peace talks and awaited clearer signals on crude flows through the Strait of Hormuz.

Our Stance: The Australian sharemarket closed lower on Tuesday as weakness in technology stocks and caution around artificial intelligence weighed on sentiment, while investors monitored progress in US-Iran negotiations. Financials provided some support, even as most sectors ended in the red. Reports that Iran may allow UN nuclear inspectors to return and reopen the Strait of Hormuz helped ease some geopolitical concerns, though a stronger US dollar and softer precious metals prices highlighted lingering uncertainty. Gains in Brent crude and mixed sector performance suggest markets remain sensitive to macro developments, with investors likely to stay focused on geopolitical headlines and policy signals in the near term.

The S&P/ASX 200 declined by 29.10 points in the latest trading session, forming a bearish candlestick pattern that suggests some moderation in short-term market sentiment. Despite the pullback, the broader technical outlook remains constructive, with the index continuing to trade above its 21-day Simple Moving Average (SMA), which remains a key dynamic support level and reinforces the prevailing uptrend. Immediate support is located around 8,700.50, and holding above this level would help preserve the current bullish market structure. A successful defence of support could attract renewed buying interest and provide a platform for further upside. Conversely, a decisive break below this support zone may weaken investor sentiment, increase selling pressure, and raise the risk of a deeper short-term correction. Overall, the medium-term outlook remains positive as long as the index continues to trade above key support levels and maintains its upward trajectory.