ASX 200 dives in $61bn wipeout; real estate, tech stocks hardest hit

ASX 200 records its biggest daily fall since June as hot US CPI data sparks global sell-off. Nomura ups RBA rates peak Lake Resources smashed on Lilac dispute and six stocks gain.

Australian investors will react to broad losses on Wall Street as higher-than-expected inflation data indicates ongoing interest rate rises. Picture: David Swift

Welcome to the Trading Day blog for Wednesday, September 14. The Australian sharemarket saw $61bn wiped in its sharpest fall in three months after hotter than expected US inflation data sparked a sell-off on Wall Street.

The S&P/ASX 200 index lost 181.08 points, or 2.6 per cent lower to 6828.60, with all sectors firmly in the red. 

The Labor Department on Tuesday reported the consumer price index rose 8.3 per cent in August from the same month a year ago, down from 8.5 per cent in July and from 9.1 per cent in June, which was the highest inflation rate in four decades.

On Wall Street the S&P 500 closed 4.3 per cent lower, the Nasdaq fell 5.1 per cent and the Dow Jones Industrial Average slid 3.9 per cent lower.

US 10-year bond yields jumped to 3.42 per cent, while two-year yields are higher at 3.75 per cent.

Oil prices are lower with Brent crude down 0.9 per cent to $US93.17 per barrel and the US Nymex 0.5 per cent lower to $US87.31 per barrel.

Iron ore futures are up 0.5 per cent to $US102.13 per tonne. 

The Aussie dollar hit a four-day low of US67.26c diving 2.3 per cent on Wednesday.