AU Morning Wrap: ASX Drops to Three-Week Lows Ahead of CPI; IAG, Fortescue Slip

The $Nasdaq Composite Index (.IXIC.US)$ broke records Tuesday, jumping over 17k for the first time before pulling back following a three-day break for Memorial Day. The index hit an all-time closing high of 17,019. Still, by the numbers, about 2,000 more equities were declining than climbing.

Just after the close at 4 PM EST, the $S&P 500 Index (.SPX.US)$ traded up 0.03%, the $Dow Jones Industrial Average (.DJI.US)$ fell about 0.655%, and the $Nasdaq Composite Index (.IXIC.US)$ closed up 0.59%.

The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ climbed to 4.97%, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ 4.54%.

Australian shares dropped to a three-week low shortly after opening. Investors are awaiting local inflation data for possible clues on the direction of interest rates. The $S&P/ASX 200 (.XJO.AU)$ slumped 0.8%, with 10 out of 11 sectors in the red, led by losses in consumer staples and property. Energy was the only sector advancing.

Mining giants weakened after iron ore futures fell 1.2% to $US117.90 a tonne in Singapore overnight. The big banks also faltered, and insurance giant $Insurance Australia Group Ltd (IAG.AU)$ slumped 1.7% after coping a fresh class-action lawsuit by Slater and Gordon over loyalty discounts on home insurance policies.

However, IT services provider $Data3 Ltd (DTL.AU)$ leapt 3.6% after Morgan Stanley upgraded the stock to "overweight," citing compelling value and AI tailwinds.

The $AUD/USD (AUDUSD.FX)$ is trading at US66.49¢, a decrease of 0.01%.

As of latest data, $Bitcoin (BTC.CC)$ is priced at $68,318, down 1.53% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,840, down 1.36% in the past 24 hours.

Insurance giant $Insurance Australia Group Ltd (IAG.AU)$ is facing a new class-action lawsuit by Slater and Gordon over loyalty discounts on certain types of home insurance policies. The lawsuit adds to the company's legal woes and highlights ongoing concerns about the use of loyalty discounts in the insurance sector.

New Zealand dairy company $Fonterra Shareholders Fund (FSF.AU)$ has reported a 2% increase in third-quarter profit after tax from continuing operations of $1.01 billion. The company has also boosted its full-year earnings forecast, indicating strong performance in the coming months.

Respirator company $Fisher & Paykel Healthcare Corp Ltd (FPH.AU)$ expects its net profit in fiscal 2025 to bounce back to $NZ310 million ($287 million) to $NZ360 million after slowing to $NZ132.6 million this year due to three "abnormal items". This outlook suggests that the company is optimistic about its future growth prospects and is taking steps to address the challenges it faced this year.