Daily Market Update: 05 May 2026

Australian market overview
The S&P/ASX 200 Index (ASX: XJO) closed lower, falling 32.7 points, or 0.4 per cent, to 8697.10 as investors positioned ahead of the Reserve Bank of Australia’s policy decision amid renewed inflation concerns tied to Middle East tensions. The index traded between 8675.4 and 8738.1, with seven of 11 sectors finishing in negative territory in a session marked by reduced activity due to public holidays in Queensland and the Northern Territory. Markets are pricing in an 83 per cent likelihood that the Reserve Bank of Australia will lift the cash rate by 0.25 percentage points to 4.35 per cent, with expectations of a hawkish tone supported by elevated inflation forecasts and ongoing global risks.

Australian sector and corporate performance
Consumer staples led declines, with Endeavour Group Limited (ASX: EDV) dropping 3.8 per cent after issuing a softer trading update and flagging rising costs linked to geopolitical tensions, alongside plans to cut head-office roles to achieve $100 million in savings. Coles Group Limited (ASX: COL) fell 3.9 per cent following a broker downgrade, while Woolworths Group Limited (ASX: WOW) eased 0.8 per cent. Energy stocks also weakened, as Woodside Energy Group Limited (ASX: WDS) lost 3.1 per cent, Santos Limited (ASX: STO) declined 1.4 per cent, and Viva Energy Group Limited (ASX: VEA) slid 3.2 per cent despite targeting a refinery restart. Financials were mixed, with Australia and New Zealand Banking Group Limited (ASX: ANZ) rising 1.9 per cent on an upgrade, while National Australia Bank Limited (ASX: NAB) fell 1.6 per cent after slightly missing profit expectations. Technology stocks outperformed, with Life360 Inc. (ASX: 360) surging 6.2 per cent and Xero Limited (ASX: XRO) gaining 2.9 per cent. Among notable movers, The a2 Milk Company Limited (ASX: A2M) dropped 9.9 per cent on a product recall, Accent Group Limited (ASX: AX1) fell 12.9 per cent after an earnings downgrade, Southern Cross Media Group Limited (ASX: SXL) edged 0.8 per cent higher, and Austal Limited (ASX: ASB) finished flat after securing a contract extension.

Global market movements
US markets retreated, with the S&P 500 Index (NYSE: SPX) falling 0.4 per cent, the NASDAQ Composite Index (NASDAQ: IXIC) declining 0.2 per cent, and the Dow Jones Industrial Average (NYSE: DJI) dropping 557 points, as escalating Middle East conflict drove oil prices higher and reignited inflation concerns. Weakness was broad-based, with Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Broadcom Inc. (NASDAQ: AVGO), Walmart Inc. (NYSE: WMT), and JPMorgan Chase & Co. (NYSE: JPM) all posting declines. In contrast, Palantir Technologies Inc. (NYSE: PLTR) rose 1.4 per cent after reporting record quarterly results, while energy stocks outperformed on the back of rising crude prices amid heightened geopolitical risk.