Fears the world’s largest economy is heading for a hard landing and will take global growth down with it have set Australia’s sharemarket up for another steep fall after US unemployment rose, signalling the Federal Reserve may have kept interest rates high for too long.

Friday’s global market sell-off was aided by fears bets on big tech companies that have invested heavily in artificial intelligence look overdone, and were followed on Sunday by news investor Warren Buffett dumped $116 billion worth of stocks in the second quarter.