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Australian shares have taken a hit, plummeting to their lowest level in six months during early trading today. The downturn is fueled by growing concerns over the robustness of the U.S. economy and the latest employment figures.
The S&P/ASX 200 index saw a significant decline, dropping 164.70 points, or 1.9 percent, to 8388 shortly after the market opened AEDT. This marks the lowest point since May, as reported by the Australian Financial Review.
This decline follows a tumultuous session on Wall Street. Initially, the S&P 500 rocketed upward, appearing poised for its best performance since May with a 1.9 percent surge. However, the gains were short-lived, and the index reversed course to close down by 1.6 percent.
Meanwhile, the Dow Jones Industrial Average fell by 386 points, equating to a 0.8 percent drop, while the Nasdaq composite faced a more severe decline of 2.2 percent.
The Dow Jones Industrial Average dropped 386 points, or 0.8 per cent, and the Nasdaq composite sank 2.2 per cent.
The sharpest losses again hit what used to be the market’s biggest winners. Nvidia, cryptocurrencies and other areas that had soared with nearly relentless momentum, as traders feared missing out on more gains, forced the market lower.
Bitcoin dropped below $US87,000 ($135,000), down from nearly $US125,000 last month.
The US government’s jobs report added to the market volatility.
The data showed hiring by US employers was stronger in September than economists expected, which may suggest the economy remains solid.
But it also said the unemployment rate worsened slightly, which could give the US Federal Reserve Bank reason to cut its main interest rate at its next meeting in December.
The last time the US stock market had swings in one day as wild as Thursday’s was in April, when President Donald Trump shocked the world with his stiff “Liberation Day” tariffs.