The S&P/ASX200 edged 4.6 points higher by midday, up 0.05 per cent, to 8,820.7, as the broader All Ordinaries fell 4.9 points, or 0.01 per cent, to 9,030.6.
A mixed morning of trading followed a similar Wall Street session, after the tech-heavy Nasdaq dropped as the much-hyped SpaceX fell to earth after its over-hyped and overvalued public listing, Capital.com senior market analyst Kyle Rodda said.
"The move has fuelled a tech-led sell-off, with the narrative now shifting back towards questions about artificial intelligence multiples and fair value," he said.
Outside the tech complex, cyclical stocks were buoyed by apparent progress in US-Iran negotiations, putting downward pressure on oil prices.
Brent crude is hovering at a key level just above $US78 a barrel, on par with the early days of the Persian Gulf conflict, weighing on local energy stocks.
Refinery operator Viva Energy fell particularly hard, losing more than two per cent after flagging mixed results in repairing its Geelong refinery after a fire in April.
Despite softer oil prices, the basic materials sector is on-track for a fourth session of losses, as an increasingly hawkish outlook for US interest rates continues to weigh on gold stocks and commodity prices.
The precious metal eased to $US4,164 ($A5,962) an ounce, effectively erasing Monday's advance for the All Ordinaries' gold sub-index.
BHP again lost ground, after falling from all-time highs late last week following a budget overrun and impairment charge at its Jansen potash project in Canada.
Fortescue and Rio Tinto eked minor losses as iron ore futures again dipped below $US100 a tonne and copper prices continued to ease after rallying since March.
The heavyweight financials sector was providing the exchange significant support, up 0.6 per cent as all big four banks traded higher, led by a nearly one per cent advance by NAB, while CommBank shares edged 0.6 per cent higher to $164.36 per share.
ASX-listed IT stocks fell 1.6 per cent, tracking with the sharp dip from US-tech overnight, although data centre operator NextDC bucked the trend with a 0.7 per cent lift.
An early rebound for WiseTech Global disintegrated into 1.6 per cent slump by lunchtime after the company announced it was not aware of a reported Australian Federal Police probe into executive chair and billionaire co-founder Richard White.
In other company news, Santos has commenced continuous production operations at its Pikka oil project in Alaska.
The Australian dollar is buying 69.84 US cents, down from 70.04 US cents on Monday at 5pm, with the greenback strengthening against the major currencies as traders weighed on increasingly hawkish outlook for US interest rates.
