Market wrap: US President Donald Trump sparks sell-off in Aussie stock market
US President Donald Trump has sparked a bloodbath in global stock markets and Aussie shares were not immune on Tuesday.
Breaking News
Don't miss out on the headlines from Breaking News. Followed categories will be added to My News.
The bloodbath hitting global equity markets hit the local bourse on Tuesday, with investors selling off on US President Donald Trump’s shock refusal to rule out the possibility of a recession in the world’s largest economy.
The benchmark ASX200 slumped 72.2 points, or 0.91 per cent, to settle at 7890.1, while the broader All Ordinaries index fell 88.3 points, or 1.08 per cent, to 8103.4.
The All Technology index retreated 4.01 per cent to 3489.2.
The Aussie dollar lost 0.21 per cent to buy US62.6c at the closing bell.
The market had dropped 1.75 per cent just before midday to wipe out some $49bn in value before recovering across the afternoon.
The decline was broadbased, with eight of 11 industry sectors ending in the red, led by IT with a substantial 3.95 per cent fall.
Tech darling Xero shed 5.07 per cent to $158.55 a share, while WiseTech Global slipped 1.86 per cent to $86.14 and TechnologyOne lost 5.68 per cent to $27.25.
Consumer stocks also suffered heavy losses, with Baby Bunting falling 7.16 per cent to $1.75 and JB Hi-Fi falling 2.47 per cent to $89.11.
The pullback followed a meltdown on Wall St overnight on Monday, with the Dow Jones shedding 890 points, or 2.08 per cent, to settle at 41,911, the S&P500 losing 2.7 per cent to 5614.5 the tech-heavy Nasdaq tumbling 4 per cent to 17,468.
President Trump sparked the plunge by refusing to rule out the possibility his tariff policies could tip the US economy into recession and trigger a resurgence in inflation.
“I hate to predict things like that,” he told Fox News on Sunday.
“There is a period of transition because what we’re doing is very big.
“We’re bringing wealth back to America. That’s a big thing and there are always periods of, it takes a little time.”
The remark wiped out hundred of billions of dollars in value across major US firms.
Elon Musk’s Tesla collapsed 15.4 per cent, chip giant Nvidia retreated 5.07 per cent and Alphabet declined 4.4 per cent.
“Markets hate uncertainty and that’s exactly what we’re getting,” eToro market analyst Josh Gilbert said on Tuesday.
“But we’re still completely in the realm of normal.
“The S&P500 is down just 8.6 per cent from its all-time high.
“It’s important to remember that pullbacks are normal and volatility is standard. This isn’t new for markets.”
Locally, the big four banks helped the bourse climb back from its morning lows.
Westpac lifted 0.95 per cent to $30.69, ANZ rose 1.04 per cent to $29.02 and NAB edged higher 0.09 per cent to $34.10.
Commonwealth Bank lifted from a low of $144.79 at 12.30pm to end the day down 0.82 per cent to $146.92.
The heavyweight materials sector also helped to stabilise the sell-off, with mining giants BHP rising 1.15 per cent to $39.65 and Rio Tinto advancing 0.53 per cent to $119.34.
Energy stocks gained despite crude oil prices trading below US$66.
Woodside Energy climbed 1.22 per cent to $23.19 and Santos rose 0.98 per cent to $6.16.
In corporate news, embattled gaming giant Star confirmed it was negotiating a $750m refinancing package with property giant Salter Brothers Capital.
Shares in Star remained suspended from quotation as the company scrambles to avoid collapse.
Gold miner Ramelius Resources slumped 17.2 per cent to $2.31 after revealing expansion plans at its flagship Mt Magnet mine, including a $95m investment in the hub’s mill to increase capacity from 2Mtpa to 3Mtpa.
“An investment decision is planned for the September 2025 quarter with new construction planned for the December 2026 quarter,” Ramelius managing director Mark Zeptner said.
The biggest gainer on the ASX200 was coal miner New Hope Corporation, jumping 3.2 per cent to $4.14.
The largest laggard was Nickel Industries, which crashed 19.8 per cent to 60.5c after the Indonesian government raised the prospect of tax hikes on miners.
More Coverage
Originally published as Market wrap: US President Donald Trump sparks sell-off in Aussie stock market
Healer’s role in mushroom retreat death
A ‘respected’ wellness guru has avoided a criminal conviction after admitting she supplied magic mushrooms to an event where a woman tragically died.
Healer’s role in mushroom retreat death
A ‘respected’ wellness guru has avoided a criminal conviction after admitting she supplied magic mushrooms to an event where a woman tragically died.