Aussie markets have just wrapped up a volatile week, with the S&P/ASX 200 Index closing 2.18% lower, primarily influenced by significant downturns in the Materials and Energy sectors today. The sudden about turn followed shifting sentiment during yesterday’s U.S trading session, with the Nasdaq 100 starting the day out strong off the back of Nvidia’s beat and raise earnings, only to end the day 2.38% lower, after a 4.6% swing from highs to lows.
The ASX 200 fell by 136.20 points today (1.59%) to 8,416.50, reversing gains from the previous session and reaching levels not seen since May.
The Materials sector (XMJ) was the biggest drag, declining by 3.93%, followed by a 3.11% drop in the Energy index (XEJ). Within the Materials sector, BHP Group shares fell 3.24% to $40.37, Fortescue Metals Group dropped 5.47% to $20.06, and Rio Tinto decreased by 3.23% to $127.85, despite iron ore prices remaining relatively stable near $104 per tonne. The Energy sector was similarly affected, with Santos Ltd experiencing a steep decline of 11.7% and Woodside Energy falling by 6.1%.
The laggards on the ASX 200 today included Lovisa Holdings Ltd (LOV), which saw its shares plummet 13.79% to $30.02, Iluka Resources Ltd (ILU) falling 11.55% to $6.28, and SILEX Systems Ltd (SLX) decreasing by 9.95% to $7.60. Liontown Resources Ltd (LTR), Paladin Energy Ltd (PDN), Resolute Mining Ltd (RSG), and Pilbara Minerals Ltd (PLS) also experienced significant losses, declining by 8.41%, 8.2%, 7.91%, and 6.92% respectively.
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Global market influences also played a role in the ASX’s performance. Strong jobs data in the United States raised concerns about potentially prolonged higher interest rates, leading to declines across major US indices, whilst concerns surrounding the AI trade once again resurfaced.
The All Ords has fared only slightly better on the week, down 1.67% today, and 2.15% on the week to sit only 1.39% higher over the past 12 months. Bulls will be looking for a bounce off these levels come Monday, but for the time being, will be licking some wounds into the weekend.
