The Australian stock market experienced a significant downturn on Friday, erasing the gains from the previous two sessions. This decline follows negative trends observed in global markets overnight. The benchmark S&P/ASX 200 dropped 2%, falling well below the 8,000 mark from its recent all-time highs. Weak economic data from the U.S., Europe, and China triggered widespread sector declines, notably in mining, energy, and financial stocks. Specifically, the S&P/ASX 200 Index fell by 158.80 points or 1.96% to settle at 7,955.90, after hitting a low of 7,935.00 earlier in the day. The broader All Ordinaries Index decreased by 160.40 points or 1.92% to 8,183.40. The Australian markets had ended moderately higher on Thursday.
Among major mining companies, BHP Group and Fortescue Metals each dropped more than 2%, while Mineral Resources and Rio Tinto each saw declines of almost 2%. The energy sector also faced declines, with Origin Energy down more than 1%, Woodside Energy falling more than 2%, Beach Energy slipping over 4%, and Santos down by almost 2%.
In the technology sector, Afterpay owner Block surged nearly 8% and Appen gained over 1%. Conversely, Zip dropped more than 4%, Xero was down almost 2%, and WiseTech Global declined over 3%.
The big four banks faced notable losses as well: Commonwealth Bank and Westpac each dropped close to 3%, National Australia Bank declined over 3%, and ANZ Banking fell more than 2%. Most gold mining stocks were lower, with Evolution Mining and Resolute Mining each down over 2%, and Northern Star Resources falling by more than 1%. Newmont edged up slightly by 0.2%, while Gold Road Resources gained more than 1%. In the currency market, the Australian dollar was trading at $0.650.
On Wall Street, stocks witnessed a sharp decline throughout Thursday's trading day, reversing the rally observed earlier in the session. Major indices reflected these downturns. The tech-heavy Nasdaq dropped 405.25 points or 2.3% to 17,194.15. The S&P 500 fell 75.62 points or 1.4% to 5,446.68, and the Dow decreased by 494.82 points or 1.2% to 40,347.97.
Similarly, European markets faced sharp declines. The U.K.'s FTSE 100 fell by 1.0%, while France's CAC 40 Index and Germany's DAX Index dropped by 2.1% and 2.3%, respectively.
Crude oil prices also settled lower on Thursday, driven by concerns over disappointing economic data and its implications for future oil demand. West Texas Intermediate Crude oil futures for September concluded at $76.31 per barrel, a decrease of $1.60 or approximately 2.05%.
