The Australian sharemarket settled lower on Wednesday after wild swings in the local bourse after risk-off sentiment prevailed on Wall Street and US technology stocks tumbled.

The S&P/ASX 200 was down 0.4 per cent, or by 32.1 points, at 7828.3, snapping a three-day winning streak. Eight of 11 sectors traded in the red, led by utilities. The All Ordinaries also slipped 0.4 per cent.

Australian investors were jittery, with the index swinging between gains and losses on Wednesday. Fears that President Donald Trump’s global trade war would harm the US economy are still weighing on sentiment after the S&P 500 Index – and the local bourse – plunged into correction territory last week.

Nvidia set the tone on Wall Street, dragging technology stocks lower after the chipmaker said it would need to increase production and spending to meet AI computation demand. The VIX index, a gauge of investor fear, jumped 5.8 per cent. Spot gold held near a record of $US3038.33 an ounce as traders dumped shares and flocked to haven assets.

“The issue we’re facing as a globe and a local market is that the longest bull run in history is probably going to have the longest bear run,” said Michael McCarthy, chief executive of trading platform MooMoo Australia.

Traders are turning attention to the US Federal Reserve’s monetary policy decision on Thursday (AEDT) – and looking for clues about the impact of America’s punitive tariffs on growth and inflation.

The risk-off sentiment drove consumer-facing stocks lower. Utilities weighed as traders took profits – Origin Energy sank 1.9 per cent to $10.60 and Mercury NZ 1.7 per cent to $5.10. Tech stocks mirrored losses on Wall Street, with NextDC retreating 1.4 per cent to $12.85.

WiseTech slid 2.3 per cent to $82.81 after releasing some findings of a governance review into its billionaire co-founder Richard White’s conduct, prompting some major institutional investors to call for a fresh review.

Miners were a mixed bag. Mineral Resources retreated 3.9 per cent to $23.88 after it closed its crucial Onslow iron haul road after a sixth road train crash – a move that will squeeze critical cash flows. Iron ore miners fell as the commodity’s price sank 2.8 per cent, trading just above the crucial $US100 a tonne mark. Fortescue dropped 1 per cent to $16.49 and Rio Tinto slipped 0.7 per cent to $118.70.

Mortgages insurer Helia Group posted the largest loss, slumping 15.9 per cent to $4.75 after the shares traded ex-dividend.

Stocks in focus

In corporate news, department store Myer retreated 1.3 per cent to 75¢ after posting flat sales in the first half. Its bottom line was crushed by 40 per cent after taking in strategic review costs, impairments and other significant items.

Nickel Industries dropped 4.6 per cent to 63¢ despite Indonesia’s Ministry of Mines approving a feasibility proposal to drastically increase ore sales from its Indonesian Hengjaya mine. The Indonesian government’s proposal to increase royalties paid by miners drove the stock to a one-year low last week.

JPMorgan upgraded JB Hi-Fi to overweight from its prior neutral rating, sending shares 3.6 per cent higher to $88.72.

The a2 Milk Company retreated 2.5 per cent to $8.32 after Barrenjoey downgraded the stock to neutral and cast doubt on the longevity of fresh subsidies from China, intended to boost birth rates, that has boosted infant formula manufacturers’ shares.

Dicker Data slipped 1.4 per cent to $8.38 after chief executive David Dicker sold a 4.6 per cent stake, or more than 8 million shares, to fund his divorce settlement.

Capricorn Metals dropped 4.2 per cent to $8.02 despite closing its remaining 55,000 ounces of gold forward sale hedge contracts, as it looks to boost exposure to record bullion prices.