The S&P/ASX200 fell five points on Tuesday, down 0.06 per cent, to 8,724.4, while the broader All Ordinaries slipped 3.8 points, or 0.04 per cent, to 8,966.
The market started the day on the back foot amid signs US-Iran peace negotiations were stalling, but an afternoon rebound in mining stocks helped cap losses.
"With banks, insurers, and real estate investment trusts under pressure, as well as defensive retailers, retail generally and infrastructure, I would be saying this is related to interest rate concerns, but there has been no events today that are speaking to that," Moomoo market strategist Michael McCarthy told AAP.
"There's clearly some fears about growth prospects as well, but I think that's one of the interesting things about the moment that the clear investment theme that we saw in the first couple of months of the year has now fractured into all sorts of different takes."
Basic materials jumped 1.3 per cent as BHP hit a new record and Rio Tinto narrowed on its all-time peak, as copper prices edged higher.
Gold miners were mixed but broadly higher, as the yellow metal firmed to $4,529 ($A6,316) an ounce.
Northern Star shares rocketed more than 13 per cent to $21.03, after major shareholder Elliott Investment Management called for a strategic review and to consider putting itself up for sale.
Banks were heavy as the financials sector tumbled one per cent, with ANZ leading all big four banks lower as its shares fell three per cent to eight-month lows of $34.
Consumer stocks were under pressure after the Fair Work Commission approved a 4.75 per cent increase to the minimum wage, while real estate trusts slumped after April building approvals fell by more than expected.
Local tech stocks outperformed the market, up almost five per cent after a strong lead from US tech overnight, and as dip-buyers picked up software stocks that were hammered in recent months over artificial intelligence disruption fears.
Energy stocks improved despite oil edging lower over the session, although Woodside offered a ballast for the segment with a 1.8 per cent lift to $31.21.
In company news, Droneshield bounced 3.6 per cent after inking a fresh US military contract.
4DMedical shares dropped almost six per cent after launching a clinical evidence program to fast-track its entry into the $US2.5 billion ($A3.5 billion) pulmonary embolism market.
Health care stocks more broadly were under selling pressure, with imaging software provider Pro Medicus soaring for a second day after announcing $46 million in new and renewed contracts.
Looking ahead, all eyes would be on Wednesday's March quarter GDP figures, as investors looked for signs of how Australia's economy was tracking heading into the Middle East energy crisis and the Reserve Bank's recent monetary tightening, IG market analyst Tony Sycamore said.
The Australian dollar is buying 71.78 US cents, down from 71.83 US cents on Monday at 5pm AEST.
ON THE ASX:
* The S&P/ASX200 slipped five points, or 0.06 per cent, to 8,724.4
* The broader All Ordinaries eased by 3.8 points, or 0.04 per cent, to 8,966
One Australian dollar trades for:
* 71.78 US cents, from 71.83 US cents at 5pm AEST on Monday
* 114.63 Japanese yen, from 114.48 Japanese yen
* 61.61 euro cents, from 61.57 euro cents
* 53.26 British pence, from 53.31 British pence
* 120.82 NZ cents, from 120.24 NZ cents
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