AUS
NZ
UK
CA
USA
IND
Highlights
- ASX slides as global markets react to tariff hikes.
- All sectors in the red amid global risk-off mood.
- Major tech, bank, and energy stocks decline.
Australian equities opened sharply lower, following a volatile session on Wall Street, where sentiment turned sour after the White House raised tariffs on Chinese imports for the third time in a week. Investors were rattled by the rapidly escalating trade tensions, prompting a broad-based retreat from risk assets.
The benchmark S&P/ASX 200 fell 2.2% or 169.1 points, settling at 7540 within the first 25 minutes of Friday’s session. This drop erased much of the previous day’s strong rally, which had been the index’s best single-day performance in five years. The All Ordinaries Index was down 2.3%, with all 11 major sectors in negative territory.
The selloff mirrored overnight action on Wall Street, where major indices reversed course after a brief surge. The Nasdaq Composite experienced a dramatic intraday swing, falling as much as 7% before paring losses to close down 4.3%. Major tech stocks were among the hardest hit—Tesla (NASDAQ:TSLA) fell 7.3%, while Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), and Amazon (NASDAQ:AMZN) each lost over 5.2%.
In Australia, the negative momentum flowed through to technology, banking, and energy stocks. Commonwealth Bank (ASX:CBA) dropped 3%, joining the broader retreat in the financial sector. Peers National Australia Bank (ASX:NAB), Westpac (ASX:WBC), and Macquarie Group (ASX:MQG) also fell more than 3% each.
Energy names mirrored a global decline in crude prices, with Woodside Energy (ASX:WDS) and Santos (ASX:STO) both losing more than 3%. Brent crude tumbled to $US63 a barrel, continuing its downward spiral amid reduced demand expectations linked to the escalating trade tensions.
Risk-off sentiment extended beyond equities. Bitcoin dropped below $US80,000, oil prices plunged, and the US dollar logged its worst session since 2022, pushing the Australian dollar above US62¢. In contrast, gold surged to a new record high, reflecting a flight to traditional safe-haven assets.
Investors remain on edge amid uncertainty surrounding US-China trade negotiations. Although President Trump expressed interest in a trade deal, he acknowledged "transition problems" related to the new tariff regime, fueling concerns that resolution could be slow and disruptive to global growth.
The market reaction underscores how sensitive global equities remain to geopolitical headlines, with little sign of relief on the immediate horizon.
