Australian shares fell Tuesday, following overnight losses from Wall Street, amid a shortened trading session on the year's final day.

The S&P/ASX 200 dropped nearly 1% or 75.9 points to close at 8,159.10.

The decline comes amid ongoing concerns about the sustainability of Wall Street's rally fueled by the "Magnificent Seven" group of US tech giants, Bloomberg reported, adding that the US Federal Reserve's outlook and China's economic health are also weighing on investor sentiment.

In company news, Beacon Minerals (ASX:BCN) signed an agreement to sell 51.3 million Maximus Resources (ASX:MXR) shares, equating to an 11.99% stake, to Astral Resources (ASX:AAR) in exchange for 24.5 million Astral shares. Shares of Beacon Minerals fell past 4% at market close, while shares of Astral Resources were down nearly 4%.

Meanwhile, Australian Payments Plus and the Australian Banking Association (ABA) are urging consumers to update their debit cards in mobile wallets before the Jan. 1, 2025, deadline. At market close, the shares of ANZ Group Holdings (ASX:ANZ, NZE:ANZ), Westpac Banking Corporation (ASX:WBC, NZE:WBC), and National Australia Bank (ASX:NAB) each fell nearly 1%, while shares of Commonwealth Bank of Australia (ASX:CBA) tumbled past 1%.