Staff writersUpdated July 2, 2026 — 10:08am,first published July 2, 2026 — 5:23amThe Australian sharemarket has retreated at the open while drops for some influential technology stocks pulled Wall Street lower overnight.The S&P/ASX 200 was down 57.2 points or 0.7 per cent, to 8665.7 in early trade, adding to its 0.6 per cent loss on Wednesday to kick off the new financial year. The Australian dollar was trading at US68.88¢.Overnight, the S&P 500 slipped 0.2 per cent for its eighth loss in 11 days. The Dow Jones Industrial Average dipped 13 points, or less than 0.1 per cent, and the Nasdaq composite fell 0.7 per cent.Technology stocks continue to be volatile.APThe Australian sharemarket is set to retreat, with futures at 6.16am AEST pointing to a loss of 20 points, or 0.2 per cent, at the open.General Mills helped lead the market and climbed 8.5 per cent after the company behind the Cheerios and Progresso brands reported better results for the latest quarter than analysts expected. It also announced a plan to cut $US3 billion ($4.4 billion) in costs over four years.Three out of every five stocks within the S&P 500 likewise climbed, and the index trimmed an early drop of 0.7 per cent after a report said US manufacturing grew last month at a slightly slower speed than economists expected. The survey from the Institute for Supply Management also said prices were increasing at a slower pace.The data could take some upward pressure off inflation, which in turn could make the Federal Reserve less likely to raise interest rates multiple times this year. Following the report, the yield on the 10-year Treasury pulled back from a peak near 4.50 per cent in the morning and fell to 4.47 per cent.That offered some relief because higher yields make it more expensive for businesses and households to borrow money and in turn can slow the economy. Higher yields also tend to undercut prices for stocks and other investments. Yields have been on the rise since the war with Iran began because of worries about high inflation caused by expensive oil.The heaviest weights on the market were stocks that had soared earlier in the euphoria around artificial-intelligence technology, including drops of 10.6 per cent for Micron Technology, 6.9 per cent for for Advanced Micro Devices and 1.3 per cent for Nvidia.Such stocks have been zigzagging in recent weeks because of worries that they had become too expensive. They also have big influence on the S&P 500 and other indexes because they’ve grown so huge in size.Kroger swung from an early loss to a gain of 1.3 per cent after the grocer said it agreed to buy Giant Eagle for $US1.25 billion in cash. It will also take on $US400 million in liabilities to buy the food and pharmacy retailer with stores stretching from Indiana to Maryland.Nike also flipped an initial loss and rose 4.9 per cent after reporting stronger results for the latest quarter than analysts expected. The athletic-gear giant is in the midst of a turnaround attempt by CEO Elliott Hill, and he said it’s still facing headwinds dragging on its revenue.All told, the S&P 500 slipped 16.13 points to 7,483.23. The Dow Jones Industrial Average dropped 13.96 to 52,305.24, and the Nasdaq composite fell 173.69 to 26,040.03.Gold’s price recovered from an early to rise. It briefly sank below $US3,980 per ounce overnight, down from more than $US5,300 per ounce early this year. When Treasurys pay more in interest, investors become less willing to pay high prices for investments. That includes gold, which pays its holders nothing.But the weaker-than-expected manufacturing report and ensuing easing of Treasury yields sent gold back up 1.1 per cent to settle at $US4,082.40 per ounce.In the oil market, prices sank as hope remains that the United States and Iran may ultimately end their war and reopen the Strait of Hormuz to oil tankers delivering crude. The price for a barrel of Brent crude, the international standard, fell 1.9 per cent to $US71.57.In stock markets abroad, indexes were mixed in Europe and Asia.South Korea’s Kospi fell 2 per cent for one of the world’s biggest moves. It’s been one of the world’s brightest stars thanks to euphoria around SK Hynix and other AI stocks, and the index is still up 97 per cent for the year so far.In Tokyo, the Nikkei 225 rose 0.6 per cent after the Japanese yen fell to a 40-year low against the US dollar.APThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.From our partners