Australian shares fell on Wednesday, dragged down by financial and healthcare stocks, as investors globally dialled back expectations of a June rate cut from the US Federal Reserve.

The S&P/ASX 200 index fell 0.7% to 7,831.20 by 0004 GMT.

The benchmark closed 0.1% lower on Tuesday, retreating from a record high scaled earlier in the session. Recent economic data showed signs of a strong US economy, raising fears that the Fed could delay cutting interest rates.

Minutes of the Reserve Bank of Australia’s last meeting showed on Tuesday that the central bank needed more time to be confident on inflation in order to rule out future rate hikes. Rate-sensitive financial stocks fell 0.7%, with the “Big Four” banks down between 0.3% and 0.6%.

Technology stocks followed the Nasdaq lower and were the biggest percentage losers.

The sub-index fell 2.9% to hit its lowest since Feb. 29, with Xero and WiseTech Global down 3.3% and 5.4%, respectively.

Healthcare stocks shed about 1.3%, with sector major CSL down 0.9%.

Real estate stocks dropped 2.6%, with LendLease Group and Mirvac Group shedding 1.3% and 2.3%, respectively. Mining stocks rose 0.5% to hit their highest since Feb. 19 on strong underlying commodity prices.

Australian shares hit record high; RBA cautious on inflation

Sector behemoths BHP Group, Rio Tinto and Fortescue advanced 1%, 0.7% and 0.4%, respectively.

Energy stocks rose 0.8% after oil prices reached year-highs on Tuesday amid the Russia-Ukraine and Middle Eastern conflicts.

Energy giants Woodside Energy and Santos climbed 0.8% and 0.7%, respectively. Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.9% to 11,983.11.