Day traders' after-market lounge January 3

Thanks afternoon crew. Massive electrical storm in the Blue Mountains. Lost power for a few minutes.

End-of-day summary:

Aussie shares endured their biggest setback since August as financial markets tempered expectations for interest rate cuts this year.

The ASX 200 slumped 105 points or 1.37% to 7523. Today's fall was the heaviest since a 110-point dive on August 16.

Prior to today, the market had enjoyed an armchair ride since late October, rallying more than 700 points to close yesterday a little more than a point from a record.

The rate-sensitive tech and property sectors spearheaded losses this session as bond yields rebounded. The Australian 10-year yield lifted today for a third session, trading back above 4%. The move mirrored a similar shift in US treasury yields overnight as investors reassessed the odds and likely timing of rate cuts.

Overnight, the Nasdaq dropped 1.63% to its biggest tumble since October. The S&P 500 shed 0.57%.