The S&P/ASX200 rose two points on Friday, up 0.02 per cent, to 8795.2, but was down 0.13 per cent for the week, while the broader All Ordinaries lost 11.3 points in the final session, or 0.13 per cent, to 8905.8.
Raw materials stocks have dragged the bourse lower, the segment dropping almost eight per cent since Monday and down almost 20 per cent from late August's all-time highs.Â
The slump followed a global sell-off in technology and chip stocks, prompting waves of repositioning as investors mull less-than-perfect US tech earnings and reimagining the artificial intelligence build-out in a high inflation, high interest rate environment.
"It's a little bit too early to call the death knell on obviously the AI boom," Capital.com senior market analyst Kyle Rodda said.
"But I think what the numbers have suggested is that the (US) earnings season has been reframed a little bit in terms of what would drive the narrative and the market from here."
BHP shares plummeted more than eight per cent since Monday to almost six-month lows of $55.05, while Rio Tinto also suffered as copper prices slumped.
Gold producers were drenched in red as spot prices fell to $US4023 ($A5740) an ounce, despite bond yields easing later in the week, as surging oil prices kept the pressure on inflation and thus higher likely interest rates around the globe.
Brent crude is above $US114 a barrel for the first time since early May, narrowing on its highest levels since US-led attacks on Iran sparked a major conflict in the region and one of the biggest oil supply shocks in history.
A rebound in the heavyweight financials sector helped limit damage at the index level, as dip-buyers sought shelter in recently neglected bank stocks.
Consumer cyclicals also offered some support, gaining 2.6 per cent on Friday and extending the segment's rebound to a fourth week of gains.
In company news, NextDC's market value was cut almost in half this week after its Melbourne data centre expansion was abandoned following community opposition to the energy infrastructure required.
The slump came just over a week since fellow-AI infrastructure player Firmus bailed on its ASX listing due to a lack of interest from overseas investors.
While the AI trade's recent turnaround had been sharp, markets had simply gone from pricing perfection to a more measured outlook, Global X ETFs strategist Billy Leung said.
"While short-term volatility may persist, today's valuations are materially lower than investors were paying for comparable earnings growth just a few months ago," he said.
The Australian dollar is buying 70.12 US cents, on par with Thursday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose two points, or 0.02 per cent, to 8795.2
* The broader All Ordinaries lost 11.3 points, or 0.13 per cent, to 8905.8
One Australian dollar trades for:
* 70.12 US cents, from 70.12 US cents at 5pm on Thursday
* 110.01 Japanese yen, from 110.35 Japanese yen
* 62.55 euro cents, from 62.35 euro cents
* 52.38 British pence, from 52.33 pence
* 123.20 NZ cents, from 123.25 NZ cents
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