Investing.com - Australian shares were down 0.9% after the first 30 minutes of Tuesday's trade, mirroring Wall Street's losses where top stocks, referred to as the 'Magnificent Seven,' took a hit. This shift is due to a combination of profit booking after the recent rally and a reversal in bond yields as the United States 10-Year stabilized above 12-week lows of 4.259%.
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The Reserve Bank of Australia (RBA) is widely anticipated to maintain rates at Tuesday’s policy meeting. This follows a retreat by traders who had surged on Friday in bets that the Federal Reserve was set to shift to rate cuts in the first half of next year.
Bank of America (NYSE:BAC) noted that while the bank governor has recently strengthened her hawkish bias, economic data has been soft since. Further tightening is a risk if the Consumer Price Index (CPI) prints stronger than expected in late January, but this is not the base case.
Gold reached a record high in early US trading before reversing. It was 2.2% lower near 4.10 pm ET. Bitcoin traded above $US42,000, then eased, but it was still up more than 5% overnight.
NVIDIA Corporation (NASDAQ:NVDA) led the losses among top stocks after the US commerce secretary pledged to prevent advanced semiconductor chips from being exported to China. Additionally, Bloomberg reported that company insiders have been selling stock.
Shares of Origin Energy Ltd (ASX:ORG) will likely draw attention after shareholders rejected a takeover proposal by Brookfield and EIG.
Despite a remarkable rally, investors seem to be cashing in some profits, even though market strategists generally remain optimistic about the outlook through the end of the year.