Derek RoseUpdated July 2, 2026 — 6:10pm,first published July 2, 2026 — 5:23amThe Australian sharemarket has managed to avoid a third straight day of losses thanks to a bounce from the banking sector.The benchmark S&P/ASX200 index finished up 1.6 points, or 0.02 per cent, on Thursday at 8724.5, while the broader All Ordinaries lost half a point to finish at 8930.9.Technology stocks continue to be volatile.APIG analyst Tony Sycamore said the ASX200 had dropped 66 points at the open to a three-week low of 8656.20.Then fresh buying, likely to have been for the start of the new financial year, entered the market and helped it claw back all of its early losses, Sycamore said.Despite the flat finish just two of the ASX’s 11 sectors finished in the green – healthcare and financials. The latter rose 1.2 per cent following a rough session on Wednesday.All of the big four retail banks rose, NAB the most, climbing 3.8 per cent to $38.41. Westpac added 2.2 per cent to $35.46, ANZ climbed 0.9 per cent to $34.79 and CBA grew 0.3 per cent to $161.14.In the heavyweight mining sector, goldminers rose as the precious metal rebounded to $US4077 an ounce following a dip earlier in the week. Evolution climbed 1.9 per cent, Northern Star grew 5.5 per cent and Newmont added 2.6 per cent.Elsewhere in the sector, BHP lost 0.6 per cent to $59.57, Rio Tinto grew 0.3 per cent to $171.27 and Fortescue lost 1.5 per cent to $18.96.The Australian dollar was trading at US68.94¢, up from US68.90¢ at 5pm (AEST) on Wednesday.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.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 Advanced Micro Devices and 1.3 per cent for Nvidia.Such stocks have been zigzagging in recent weeks because of worries that they have 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 was still facing headwinds dragging on its revenue.AAP with AP, BloombergThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.More:World marketsSharesASX LimitedNational Australia BankFrom our partners