ASX 200 drops 2.5pc after big falls in banks and energy stocks; CPI rises 3.5pc

The ASX suffered a $59bn wipeout amid inflation and geopolitical jitters, ahead of key two-day meeting of the US Federal Reserve. Big four banks dropped between 2 and 3.6 per cent.

The Australian market is appears to be in correction mode. Picture: NCA NewsWire / Damian Shaw

Welcome to the Trading Day blog for Tuesday, January 25. The share market suffered a $59bn wipeout, despite a massive intraday rebound on Wall Street before the start of a two-day meeting of the US Federal Reserve. Top four banks were the main drags, falling between 2 and 3.6 per cent.

 

The S&P/ASX 200 index closed 2.5 per cent lower at 6961.6 points falling as much as 3 per cent to an eight-month low of 6920.7.

The Dow Jones Industrial Average closed up by 0.3 per cent, along with the S&P 500 after both fell by over 3 per cent at one stage. The tech-heavy Nasdaq edged up by 0.6 per cent.

Iron ore fell 2.7 per cent to $US133.7 per tonne. The US Nymex crude price traded down 2.1 per cent to $US83.31 a barrel.

The Australian dollar is 0.8 per cent lower to US71.29 cents.