The Australian sharemarket on Tuesday tumbled 1.7 per cent from near record highs in a broad sell-off as investors pushed out the timing of interest rate cuts into mid-next year.

The benchmark S&P/ASX 200 Index lost 138.3 points to 8205.7 at the closing bell, with all 11 sectors finishing in the red. It was the sharpest sell-off in more than six weeks after the gauge traded within 11.5 points of its all-time high on Monday. The All Ordinaries lost 1.6 per cent.

Investors Mutual portfolio manager Daniel Moore said investors were “profit taking” after the ASX’s recent strong performance. He also cited a rise in bond yields and expectations of a “higher-for-longer” rate environment.

Bond traders have once again pushed back the timing of the first interest rate reduction in Australia to May after a jump in three-year bond yields that tracked similar moves in the US.

Rate-sensitive sectors were the hardest hit on the ASX with property stocks tumbling 2.3 per cent, led by a 2.7 per cent decline in Goodman Group to $36.07. The banking sector also weighed, with index heavyweight Commonwealth Bank off 2.2 per cent to $141.23. The other big four lenders were down a similar amount.

The mining giants also finished in the red, tracking a weaker iron ore price in Singapore. BHP dropped 1.2 per cent to $42.14 and Fortescue Metals 1.6 per cent to $19.53.

Stocks in focus

In corporate news, Mineral Resources dropped 4.3 per cent to $37.87, extending Monday’s 10-plus per cent loss, following The Australian Financial Review investigation that uncovered how managing director Chris Ellison allegedly evaded tax for years.

WiseTech shares rebounded 2.8 per cent to $107.62 after dropping earlier in the session. The shares had slumped nearly 15 per cent on Monday amid news that its billionaire founder Richard White has been offloading stock to pay his ex-wife, contradicting earlier explanations for the sell-off.

Toll roads operator Transurban fell 1.6 per cent to $13.05 even as it reaffirmed its FY25 distribution guidance of 65¢ per share and reported growth in daily traffic across all markets except Melbourne.

Viva Energy dropped 6.7 per cent to $2.66 after warning of softer retail conditions, lower tobacco sales and higher business costs.

And Audinate Group sank 6.1 per cent to $8.96 after the software maker warned it did not expect to meet its full-year gross profit target, saying “headwinds” are forecast to continue into Q2.