At noon AEST on Thursday, the benchmark S&P/ASX200 index was down 49.9 points, or 0.64 per cent, to 7,797.8, while the broader All Ordinaries had fallen 48.4 points, or 0.6 per cent, to 8,069.6.
Minutes released overnight from the rate-setting Federal Open Market Committee showed some appetite for raising US rates despite Federal Reserve chairman Jerome Powell's recent pronouncements that such a move was unlikely.
"Various participants mentioned a willingness to tighten policy further should risks to inflation materialise in a way that such an action became appropriate," the minutes said.
Westpac chief economist Besa Deda said US markets reacted by selling off across the board and shorter-dated US bond yields rose as markets reduced the chance of rate cuts in 2024.
Also early Thursday, AI chip maker Nvdia again beat earnings expectations, posting $US28 billion ($42.3 billion) in first-quarter revenue, up 262 per cent from a year ago.Â
"The result today once again underscores that there is continued demand for AI, and that demand is showing no signs of abating," said eToro market analyst Josh Gilbert.
"It feels like AI is just getting started."
Five of the ASX's 11 sectors were lower and six were higher.
Tech was the biggest mover, climbing 2.3 per cent as Xero rose 8.2 per cent to a two-month high of $132.22 after the Kiwi cloud accounting firm announced it had grown 2023/24 revenue by 22 per cent to $NZ1.7 billion ($1.6 billion), in what E&P Capital analyst Paul Mason called a "relatively strong beat" to overall consensus expectations.
"This result shows we're doing what we said we'd do," chief executive Sukhinder Singh Cassidy said.
"We've delivered a strong and profitable FY24 result."
BHP was down 2.6 per cent to $45.05 as the Big Australian delivered its third offer for Anglo American, an all-scrip offer that values the miner at $74 billion.
Anglo American rejected the bid, which BHP called its final offer, but Anglo American also extended by a week the deadline for the two sides to make a deal.
Fortescue was down 1.1 per cent, Rio Tinto had fallen 1.9 per cent and goldminer Northern Star had dropped 3.5 per cent.
All of the big four banks were down, with ANZ drooping 0.9 per cent, NAB falling 1.2 per cent, ANZ retreating 1.0 per cent and CBA 0.6 per cent lower.
The Australian dollar was buying 66.24 US cents, from 66.62 US cents at Wednesday's ASX close.
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