The S&P/ASX200 fell 38.1 points on Thursday, down 0.43 per cent, to 8793.2, as the broader All Ordinaries lost 39.5 points, or 0.44 per cent, to 8917.1.
Energy and materials stocks dragged the bourse into the red, following a fresh wave of global AI jitters and the data centre build-out, Global X senior strategist Marc Jocum said.
"That nervousness is hitting closer to home, with Firmus pulling its IPO and NEXTDC suffering a spectacular sell-off yesterday," he said.
"The concern is that the infrastructure build-out is running ahead of its ability to deliver returns."
Copper prices fell to five-week lows, weighing on mining juggernaut BHP, which fell 2.4 per cent to $57.13 as its leaders fronted shareholders at the group's annual meeting.Â
Fortescue tumbled more than four per cent as its stand-off with China's state-backed ore buyer deepened, while iron ore futures lingered below $US96 a tonne.
Gold stocks were a sea of red as the metal's spot price fell to $US4089 ($A5828) an ounce, with high bond yields still impacting the investor case for precious metals.
Energy stocks were also under pressure despite Brent crude topping $US111 a barrel after the US ordered diplomats to leave Saudi Arabia as Houthi attacks continue.
Refinery operator Viva Energy stood out at a company level, dropping almost five per cent after its trading update failed to impress.
Consumer retail was the third sector facing significant selling, down 1.7 per cent in a broad-based sell-off.
The move came a day after hawkish commentary from Reserve Bank deputy governor Andrew Hauser narrowed the odds of a November interest rate hike.
All eyes were on next week's inflation print, Global X's Mr Jocum said.
"A hotter-than-expected reading could cement expectations of a Melbourne Cup Day rate hike, leaving the RBA with little room to hold its horses," he said.
Financials ended the session 0.4 per cent higher with help from a rally in major insurers, as the major banks grasped modest gains.
In company news, APA Group will spend $700 million developing a pipeline linking gas infrastructure in Queensland and NSW as it looks to shore up east coast supply.
Australian biotechnology giant CSL will defend a class action over allegations relating to revenue projections and expected financial performance in the 2026 financial year.
The news came a day after CSL announced British pharmaceutical executive Deborah Waterhouse will take the reins as chief executive and managing director from February 2027.
The Australian dollar is buying 70.12 US cents, down from 70.17 US cents on Wednesday at 5pm.
ON THE ASX:
* The S&P/ASX200 fell 38.1 points, or 0.43 per cent, to 8793.2
* The broader All Ordinaries lost 39.5 points, or 0.44 per cent, to 8917.1
One Australian dollar trades for:
* 70.12 US cents, from 70.17 US cents at 5pm on Wednesday
* 110.35 Japanese yen, from 110.98 Japanese yen
* 62.35 euro cents, from 62.52 euro cents
* 52.33 British pence, from 52.46 pence
* 123.25 NZ cents, from 123.65 NZ cents
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