Staff writersUpdated July 23, 2026 — 5:44pm,first published July 23, 2026 — 5:18amThe Australian sharemarket pared most of its early gains after the nation’s latest job market figures came in stronger than expected, keeping the chances of another interest rate rise next month on the table.The S&P/ASX 200 finished 16 points, or 0.2 per cent, higher at 8439, having climbed as much as 1.2 per cent earlier in the day. Mining and energy stocks paced the muted gains, while six of the ASX’s 11 sectors finished in the red. The Australian dollar was trading at US70.03¢ in the late afternoon.Employment surged in June, stoking bets on another interest-rate hike by the Reserve Bank.Louie DouvisThe Australian Bureau of Statistics on Thursday morning reported that employment surged in June, extending the previous month’s gains, underscoring the ongoing strength in the nation’s labour market and stoking bets on another interest rate increase by the Reserve Bank.The Aussie dollar and bond yields climbed after the data showed the economy added 76,300 jobs, more than five times estimates, after an upwardly revised 44,000 gain in May. The jobless rate held at 4.4 per cent, as forecast, reflecting a rise in the participation rate. However, the underemployment rate also lifted, climbing to 6.5 per cent.RBA Governor Michele Bullock said at her June press conference that the central bank is trying to slow the economy to help pull down inflation. Last month’s hiring results suggest activity may be stronger than the bank had anticipated. The bank’s next rate decision is scheduled for August 11.“The jobs report was marginally stronger than we expected,” AMP Economist My Bui said. “We think [the RBA] will hike in August with inflation too far from target band” and amid upside risks like a second-round fuel impact, she said.Higher interest rates tend to slow economies and undercut stock prices as borrowing gets more expensive for businesses and consumers, hitting corporate profits.In major corporate news, Macquarie Group said its chief executive, Shemara Wikramanayake, is retiring after eight years in the job, to be replaced by the head of its banking arm, Greg Ward.The investment banking giant said Wikramanayake, who is 64 and has been chief executive since late 2018, will retire from November this year. Ward, 58, is a Macquarie veteran who has run the group’s banking and financial services arm, which houses its rapidly growing retail bank, since 2013. He joined Macquarie in 1996 and previously served as chief financial officer for 14 years.The company’s shares fell 0.5 per cent on the news. Meanwhile, the big four banks all advanced, with CBA up 0.4 per cent, Westpac up 0.8 per cent, National Australia Bank up 1.4 per cent and ANZ Bank up 0.6 per cent.Origin Energy, the largest Australian power company, added 0.8 per cent, recouping some of its 1.9 per cent fall from Wednesday. It confirmed shortly before the market closed that a hacker had gained access to customers’ private information, including names, addresses and partial credit card and bank account numbers.The company said on Thursday it was working to determine how many customers had been affected by the cybersecurity breach.James Hardie jumped 6.1 per cent after the building materials maker – which makes most of its earnings in the US – said its June quarter sales beat its own forecasts, coming in at between $US1.45 billion ($2.1 billion) and $US1.48 billion, thanks to stronger-than-expected sales of its home sidings.Mining giants BHP, Rio Tinto and Fortescue extended their strong run from Wednesday, up 1.5 per cent, 0.5 per cent and 1 per cent, respectively, even as iron ore fell as the continued US-Iran hostilities clouds the demand outlook. The gold miners continued to rise as the precious metal extended its gains, supported by dip-buyers who scooped it up after prices had drifted lower in recent weeks on concerns that rising inflation will prompt the Federal Reserve to raise interest rates.Bullion was trading around $US4130 an ounce, after rising 3 per cent over the previous two days as dip-buying supported prices. This came as the US and Iran signalled that they aren’t ready to return to the negotiating table after escalating attacks. Gold miners Northern Star Resources and Evolution Mining were both up 1.9 per cent.Energy stocks had another strong session as oil prices continued to climb, hitting a six-week high. Brent crude spiked in post-settlement trading overnight, rising near $US95 a barrel after Yemen’s Iran-backed Houthi rebels said they had struck two Saudi tankers in the Red Sea. That’s up from less than $US72 early this month, which is roughly where it was before the war.Local oil and gas giant Woodside rose 0.5 per cent, while coal producers Yancoal and Whitehaven were up 1.5 per cent and 2.2 per cent, respectively. Santos finished flat after it cut its production guidance for the second quarter due to challenges in the ramp-up of its Barossa and Pikka projects, and the timing of cargo receipts.Tech stocks slumped after Google parent Alphabet and Elon Musk’s Tesla reported earnings early in the day that raised concerns about their cash-burn as they ramp up their AI investments. Software makers Xero and WiseTech plunged 5 per cent and 7 per cent, respectively, while Technology One fell 3.7 per cent and family tracking app Life 360 lost 5.5 per cent.The ASX’s meagre gain came as US sharemarket futures trended down, suggesting a 0.2 per cent drop in the S&P 500 when Wall Street opens for trade. US indexes were drifting during their Wednesday session, with the S&P 500 slipping 0.1 per cent, coming off its best day in three weeks, after swinging between modest losses and gains for much of the day. The Dow Jones closed flat and the Nasdaq composite lost 0.6 per cent.Tesla released its results after the closing bell, reporting negative free cash flow in the second quarter for the first time in more than two years as the Elon Musk-led EV maker accelerated spending on AI infrastructure, battery capacity, robotaxis and next-generation manufacturing. Its shares were down 1.3 per cent in extended trading.Google parent Alphabet topped Wall Street estimates for its second-quarter revenue, buoyed by strong demand for its cloud computing services from enterprises worldwide.Revenue at Google Cloud rose 82 per cent to $US24.8 billion during the quarter ended in June, accelerating from the 63 per cent jump reported in the preceding three months. Analysts on average expected a 64 per cent increase, according to data compiled by LSEG. However, its stock also declined in extended trading amid concerns about the scale of its AI spending.The majority of stocks in the S&P 500 rose overnight after more companies reported strong profits. Philip Morris International rose 3.3 per cent after the seller of Marlboro cigarettes reported stronger profit and revenue for the latest quarter than expected. Its shipments of smoke-free products rose 7.5 per cent.AT&T climbed 3.5 per cent after reporting a stronger profit than analysts expected. CEO John Stankey said the telecom is accelerating plans to send roughly $US10 billion to shareholders this year through share buybacks.Super Micro Computer soared 20 per cent after the seller of AI servers said it expects to report stronger profit margins for the latest quarter than it had earlier forecast. It, though, also said that revenue will likely come in at the low end of its forecasted range.In other international markets, indexes climbed in Europe following a mixed session in Asia. London’s FTSE 100 rose 1.2 per cent, while Hong Kong’s Hang Seng fell 1 per cent for two of the world’s bigger moves.From our partners