Key takeaways:

• Tech shares storm higher amid Nasdaq resilience

• Retail and iron ore stocks tumble as economic headwinds mount

A strong showing from the tech sector was not enough to offset heavy losses for large-cap names across the materials and consumer discretionary sectors.

Which shares excelled?

Building products supplier Adbri (ASX: ABC) soared nearly 22% on Thursday, with the company share price reaching its highest level since September last year. The catalyst for the re-rate was the company annual general meeting, where management handed down a trading update. 

Investors were particularly impressed by one piece of commentary from Adbri shareholder meeting, with the company indicating that underlying net profit after tax for the period ending April 2023 was significantly higher than the opening four months of last year.

Software platform Megaport (ASX: MP1) took inspiration from overseas, with the company soaring in the immediate aftermath of Nvidia bumper earnings report. While the US semiconductor manufacturer is in a different industry altogether, upbeat data around the demand for artificial intelligence processors resonated across tech stocks that might be expected to benefit from the growing theme.In a week where Webjet (ASX: WEB) and Qantas (ASX: QAN) delivered strong results that highlighted the recovery of the travel sector, SiteMinder (ASX: SDR) also gained ground. Shares in the booking engine platform have trended sideways over recent months, failing to keep up with travel-related peers at the heart of the industry recovery. Nonetheless, this week performance could signal investor optimism, or it may prove to be another bout of volatility for the stock, which prior to this week, was flat for the year.Another winner from the tech sector, albeit due to its results, was Technology One (ASX: TNE). The enterprise resource planning software firm announced a 22% increase in total revenue to $210.3 million, with SaaS annual recurring revenue soaring 40%. The company was able to transfer much of this improvement to the bottom line, with profit after tax rising 24% to $41.3 million. Combined with a 20% rise in cash and cash equivalents, management hiked the company interim dividend by 10%.

In terms of the highlights within its report, the company noted UK profit grew by 29%, while large-scale SaaS customers are embracing its software, with client numbers from this segment up 27%. Looking forward, management expects the company profit to rise between 10% to 15%, with SaaS annual recurring revenue tipped to replicate growth from the last half.

Share prices are also higher this week for Polynovo (ASX: PNV), Strike Energy (ASX: STX), Telix Pharmaceuticals (ASX: TLX), Altium (ASX: ALU), and Beach Energy (ASX: BPT).

Which shares dragged on the market?

Retail stocks were sold off over recent trading sessions as one of the sector prominent names sent a warning to investors. Shares in Universal Store Holdings (ASX: UNI) crashed 25% on Wednesday after the company indicated that despite being on track for record sales for the current financial year, subdued trading is expected to persist into FY24. Universal announcement noted spending has tightened significantly across the last two months, and there are expectations that will continue as young consumers face cost-of-living challenges. That commentary was enough to smash shares in two other ASX-listed retailers exposed to young consumers, with footwear business Accent Group (ASX: AX1) and jewellery fashion chain Lovisa Holdings (ASX: LOV) both on the outer.Lithium duo Lake Resources (ASX: LKE) and Core Lithium (ASX: CXO) both struggled over recent days as momentum in each company shares soured. Short interest in the former has increased over recent weeks, including a sharp jump across the last week. Meanwhile, the latter was on the receiving end of a downgrade by JPMorgan, which revised the stock to an underweight' rating. 

Both companies also faced some difficulty shaking off negative sentiment associated with the quarterly results from US-listed Sociedad Quimica y Minera de Chile. The global lithium giant unveiled softer profits on the back of lower demand for its lithium.

Investors may have been optimistic that thawing trade relations with China would prove a boon for Treasury Wine Estates (ASX: TWE), however, shares in the wine producer tumbled on Thursday. That followed a trading update from the company, which pointed to mixed conditions. 

The company anticipates sales will be down 2% to 3% versus last year, even though earnings (EBITS) are expected to grow between 11% to 13% against the same period. Consumers have soured towards Treasury Wine entry-level premium brands in the US, where the market remains tough. On the plus side, its luxury wine stable is performing well, meeting management expectations. 

A tough week for iron ore miners sees Mineral Resources (ASX: MIN) among the week underperformers, while BHP (ASX: BHP) hit a six-month low. A week ago the iron ore price was trading above US$110 per tonne, however, the commodity dipped below the key US$100 per tonne mark amid slowing demand from Chinese steel producers. Activity in the world second-largest economy has remained patchy coming out of the pandemic, despite significant government support. Imdex (ASX: IMD), Arafura Rare Earths (ASX: ARU), Silex Systems (ASX: SLX), Eagers Automotive (ASX: APE), and Coronado Global Resources (ASX: CRN) also came unstuck this week.

We'll be back next week with another Weekly ASX Trading Wrap Up - until then, have a great week!