Australia's share market falling, tracking a Wall Street slump after sticky US inflation figures narrowed the odds of incoming interest rate hikes from the world's biggest central bank.
The S&P/ASX200 fell 37.7 points by midday on Thursday, down 0.43 per cent, to 8960.2, as the broader All Ordinaries lost 54.8 points, or 0.62 per cent, to 8814.2.
The slump tracked a tech-led sell-off in US markets overnight, following a hotter-than-expected inflation print and further selling in microchip stocks amid fears about rising competition.
While investors braced for higher US interest rates due to stubborn inflation, local rate hike expectations moved in the other direction after Australian unemployment grew to 4.7 per cent in September, as jobs fell by more than 39,000.
Only five of 11 local sectors were in the red by lunchtime, but technology and mining stocks were hit hard with drops of more than three per cent each.
In terms of the outlook for local investors, earnings resilience would be the critical test, Moomoo chief market strategist Tapas Strickland said.
"With borrowing costs staying higher for longer and energy overheads elevated, profit margins face increasing scrutiny," he said.
"This week's mixed US bank earnings showed that revenue growth alone will not protect valuations in an unforgiving rate climate."
BHP and Rio Tinto weighed heavily on the raw materials sector, shedding around four per cent each as iron ore futures fell to $US90.35, while copper prices erased most of their week's gains overnight.
Gold producer also sold off, with the sub-index down 1.6 per cent as the underlying commodity traded near $US4140 ($A5962) an ounce, while battery minerals producers and rare earths plays also tumbled.
The heavyweight financials sector acted as a ballast against the weakness in technology and miners, with CommBank up two per cent to $154.20 and leading the big four banks higher.
Major insurers also performed well, with Suncorp and Medibank each up more than two per cent.
Energy stocks were mixed, with Woodside and Santos counterbalancing weakness in uranium stocks and coal producers as Brent crude hovered near $US105 a barrel.
Real estate trusts retreated as recent US interest rate optimism turned sour, while defensive sectors like utilities and consumer staples outperformed the other segments.
In company news, Treasury Wine Estates has told shareholders it has no current plans to carve our Penfolds for a separate stock market listing.
Bank of Queensland beat out the top-200 with a 4.6 per cent advance after a strong quarterly update, while ARB swung in the other direction on softer sales.
Droneshield shares dropped to 16-month lows of $1.42 despite hitting the midpoint of its forecast committed revenue range, with $261 million on the books.
The Australian dollar is buying 69.52 US cents, down from 69.97 US cents on Wednesday at 5pm.