The S&P/ASX 200 dropped 106 points, or 1.2%, to close at 8,844, its lowest level in two weeks after several sessions of lacklustre trading. A sharp rebound in U.S. futures failed to improve sentiment, with investors largely shrugging off President Trump’s promise to extend the Iran ceasefire indefinitely.
Inflation worries in Australia intensified as elevated interest rates and surging fuel prices linked to the Middle East conflict further clouded the growth outlook. Westpac now expects the RBA to lift the cash rate by another 25 bps in May, with additional increases seen as likely.
Sector losses were led by healthcare, financials, commercial services, and logistics, although advances in consumer non-durables, utilities, and industrial services helped limit the overall decline. Cochlear slumped nearly 41%—its worst single session since listing in 1995—after cutting its profit guidance on the back of soft U.S. demand and heightened geopolitical risks.
The four major banks shed between 2.0% and 2.5%. Other notable laggards included CSL Ltd. (-5.7%), Evolution Mining (-2.9%), Qantas Airways (-2.3%), and Lynas Rare Earths Ltd. (-1.3%).
