Billions Wiped Out in a Brutal Market Rout
The Australian stock market suffered a brutal sell-off today, with the ASX 200 plunging 83.8 points (-1.06%) to 7,850.70. A tidal wave of red swept across the index as 10 out of 11 sectors collapsed, leaving only Consumer Staples in positive territory.
Technology stocks led the losses, plummeting 2.74%, while Real Estate (-1.95%) and Energy (-2.25%) suffered heavy blows. Investors watched in horror as the market erased more than $26.2 billion by midday, amplifying fears of a larger correction ahead.
ASX 200 is trying its best to recover
Trump’s Tariffs Ignite Global Sell-Off
Market jitters escalated after Donald Trump’s shock “Liberation Day” tariff announcement, sending shockwaves through global markets. The plan, which slaps a 10% base tariff on all imports, included even harsher 34% tariffs on China, 20% on the European Union, and 24% on Japan.
Also Read: ASX 200 Live: ASX Sinks as Market Struggles—Ansell and Liontown Lead Declines
These punitive measures reignited global recession fears, with economists warning of inflationary pressures and reduced corporate profits. AMP’s Chief Economist Shane Oliver cautioned that if the US economy slows significantly, the ASX 200 could fall more than 15% from its peak.
Market jitters escalated after Donald Trump’s shock “Liberation Day” tariff announcement, sending shockwaves through global markets
ASX 200 Teeters on the Edge of a Bear Market
With the market already down 9.6% from its February 14 high, investors are bracing for deeper losses. Historically, corrections of more than 10% often trigger panic selling, potentially leading to a full-blown bear market if confidence continues to erode.
Neil Dutta of Renaissance Macro Research noted, “The market isn’t down as much as expected. Perhaps investors are hoping for a policy reversal, but I wouldn’t hold my breath.”
Also Read: US Tariff Bombshell: Australia Hit With Minimum 10% Levy Amid Global Trade Dispute
Which Stocks Took the Hardest Hits?
Several major ASX-listed companies tumbled sharply, reflecting investor concerns over rising costs and slowing global trade.
- Ansell Limited (ANN): Plummeted 14.54%, the worst performer on the ASX 200, as investors feared higher costs for imported materials.
- Netwealth Group Limited (NWL): Sank 8.99%, as financials struggled under rate cut uncertainty.
- BHP Group (BHP): Dropped 2.2%, hit by fears of reduced Chinese demand for iron ore.
- Rio Tinto (RIO): Lost 2.2%, facing similar concerns.
- Macquarie Group (MQG): Fell 2.4%, as financials remained under pressure.
Even defensive sectors felt the pain, with Commonwealth Bank (CBA) down 1.3%, despite its usual resilience during market downturns.
Global Markets in Chaos
The ASX sell-off mirrored heavy losses across global markets:
- The Nikkei 225 plunged 3% as Japanese exporters reeled from Trump’s tariff bombshell.
- S&P 500 futures collapsed 3.5%, setting up Wall Street for a grim session.
- Nasdaq futures tanked over 3%, as tech giants like Tesla and Apple crumbled in after-hours trading.
RBA Rate Cut Bets Surge as Panic Spreads
The market turmoil heightened expectations for an RBA rate cut next month, with traders now pricing in a 25-basis-point cut. Falling equity markets and worsening economic uncertainty may force the central bank’s hand, despite ongoing inflation concerns.
What Happens Next?
The ASX 200’s fate hinges on global sentiment and policy responses. Analysts warn that if market losses extend beyond 10-15%, Trump may dial back tariffs to avoid a full-blown crisis.
For now, the market remains on edge, and investors are fleeing to safe havens like gold and bonds. If the panic intensifies, this could be just the beginning of a deep and painful correction.
