The Australian sharemarket erased early gains on Monday after US Federal Reserve chair Jerome Powell signalled rate cuts could come as soon as next month, with another wave of corporate results triggering heavy losses.

The S&P/ASX 200 was little changed, up 5 points, or 0.1 per cent to 8972.40, after rising 0.9 per cent to an intraday record high of 9054.50 as traders increased bets on a 25-basis-point September reduction following Powell’s comments that borrowing costs may be eased before key economic data improves.

But six of the 11 index fell as a rotation out of the banks and several corporate earnings misses offset gains in materials and energy, which rose on higher commodity prices amid expectations that a US rate cut could boost demand and a weaker US dollar.

The country’s four largest banks trimmed losses, with National Australia Bank down 1.8 per cent to $41.71, Westpac 1.8 per cent to $38.29, Commonwealth Bank 1.5 per cent to $170.30 and ANZ 1.4 per cent to $33.40.

Investors rotated into miners as Singapore iron ore futures rose 2.3 per cent to $US102.85 a tonne on US rate optimism. BHP gained 2.7 per cent to $43.14, Fortescue Metals 2.6 per cent to $20 and Rio Tinto 2.4 per cent to $115.42.

Energy also outperformed as Santos rose 0.6 per cent to $7.81 after extending due diligence for its Middle Eastern takeover suitor until September 19 and meeting first-half analyst expectations.

Investor sentiment soured as Reece tumbled 16.4 per cent to $11.76 after CEO Peter Wilson described the company’s full-year results, which missed expectations, as “disappointing” following a 20 per cent profit fall.

Endeavour Group fell 1.4 per cent to $4.14, posting a 17 per cent decline in full-year net profit to $426 million.

Morgans investment strategist Tom Sartor said the beat-versus-miss trend has shifted, with any company falling short of robust results being swiftly sold off.

“The standout feature has been how harshly the market has treated disappointment – as was well flagged – even where misses may have only been marginal or in stocks already trading at attractive valuations,” he said.

Sartor noted that among extreme volatility in large caps over nine years, ASX 50 stocks have fallen 10 per cent or more on results day 15 times, six in 2025 alone.

Stocks in focus

Lithium miner PLS jumped 2.4 per cent to $2.16 as EBITDA beat consensus despite a full-year loss of nearly $200 million.

Ansell soared 10.3 per cent to $34.53 as underlying earnings per share topped its upgraded guidance range, with margins beating expectations despite lower revenue.

Investigations software provider Nuix fell 5 per cent to $2.06 after a $9.2 million full-year loss due to higher legal costs and fewer multi-year contracts, compared with a $5 million profit the prior year.

NIB rose 2.7 per cent to $7.92 after a 9.4 per cent lift in net profit to $198.6 million, supported by private health insurance growth and improved investment returns. Revenue grew 7.8 per cent.

Southern Cross Media surged 26.5 per cent to 83.5¢ after reporting a strong full-year turnaround for the 2025 financial year, underpinned by its turnaround strategy.

Aussie Broadband rocketed 20.2 per cent to $5.36 as the group’s outlook for 2026 came in ahead of analyst expectations as it struck a deal to sell Buddy Telco to Tangerine.