SYDNEY, AAP – A second consecutive day of broad-based selling on the ASX has felled heavyweight shares across most industry groups.

The market was down as much as about 1.75 per cent on Wednesday, before improving by the close of trade.

The benchmark S&P/ASX200 index closed lower by 78.9 points, or 1.08 per cent, to 7196.7.

The All Ordinaries closed down 80.9 points, or 1.07 per cent, to 7500.2.

Technology shares fared worst and dropped more than two per cent.

The widespread losses follow concerns about inflation in the US and the prospect of a credit default.

The Australian dollar was buying 72.55 US cents at 1621 AEST, lower from 72.97 US cents at Tuesday’s close.