This article highlights the key developments influencing market movements and investor sentiment in both Australia and the US.

The key takeaways from the last 24 hours

ASX dips as banks and supermarkets decline

The Australian share market experienced a slight decline on Tuesday as major banks and supermarket giants faced a sell-off, which outweighed gains in the mining sector.

The benchmark S&P/ASX 200 Index (ASX: XJO) dropped by 0.1 per cent, or 10.9 points, closing at 8142, while the All Ordinaries (ASX: XAO) finished flat.

Investors were largely unaffected by the Reserve Bank of Australia’s decision to maintain the cash rate at 4.35 per cent, with Governor Michele Bullock signalling that no rate cuts would occur in the near future.

The big four banks—Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Limited (ASX: NAB), Australia and New Zealand Banking Group Limited (ASX: ANZ), and Westpac Banking Corporation (ASX: WBC)—all ended the session in the red as investors moved funds from financials to mining stocks, spurred by China’s announcement of stimulus measures aimed at reaching a 5 per cent growth target.

Supermarket giants Woolworths Group Limited (ASX: WOW) and Coles Group Limited (ASX: COL) also saw a second consecutive day of declines following accusations of false discount claims by the regulator.

Iron ore rally boosts mining stocks

Mining stocks rallied as iron ore prices surged above $US94.05 per tonne, driven by the People’s Bank of China’s decision to implement policies that support increased bank lending and lower mortgage rates for existing housing loans.

The measures aim to stimulate China’s property market, a significant consumer of iron ore. BHP Group Limited (ASX: BHP) rose 3.3 per cent, Rio Tinto Limited (ASX: RIO) climbed 3.7 per cent, and Fortescue Metals Group Limited (ASX: FMG) increased by 1.8 per cent, while smaller players like Mineral Resources Limited (ASX: MIN) and Sandfire Resources Limited (ASX: SFR) posted significant gains of 6.5 per cent and 6.2 per cent, respectively.

Lithium producer Liontown Resources Limited (ASX: LTR) also jumped 7.1 per cent.

According to IG analyst Tony Sycamore, the rally in mining stocks came at the expense of the big banks, as investors shifted focus to commodities and mining. Elsewhere on the ASX, gaming company Light & Wonder, Inc. (ASX: LNW) dropped 18.4 per cent following a legal defeat, while online luxury retailer Cettire Limited (ASX: CTT) surged 79 per cent after resolving issues with its auditors.

US markets climb as Nvidia leads gains

The S&P 500 Index (NYSE: SPX) rose 0.2 per cent to a new record on Tuesday, while the Nasdaq 100 Index (NASDAQ: NDX) gained 0.5 per cent, driven by a 4 per cent surge in Nvidia Corporation (NASDAQ: NVDA) shares after reports that its CEO had stopped selling stock.

The Dow Jones Industrial Average (NYSE: DJI) also added 83 points. Traders increased bets on additional interest-rate cuts this year following disappointing consumer confidence data, which hit its lowest point in over three years.

Fed officials, including Austan Goolsbee, indicated the need for further cuts, particularly targeting the labour market.

The Estée Lauder Companies Inc. (NYSE: EL) shares jumped 6.11 per cent, while China stocks like Alibaba Group Holding Limited (NYSE: BABA) and JD.com, Inc. (NASDAQ: JD) surged 7.9 per cent and 13.9 per cent, respectively, after China introduced aggressive stimulus measures to boost growth.

However, Visa Inc. (NYSE: V) shares dropped 5.5 per cent amid reports of a possible DOJ lawsuit regarding its debit card monopoly.

Geopolitical concerns persisted, with JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon warning of global economic risks.