• ASX has tumbled by 4%, after being down by 5% earlier today
  • US stock markets have officially gone into bear market territory
  • US interest rates decision tomorrow (US time)


Billions of dollars were wiped off the value of Australian blue chips today, as investors dumped stocks in a market panic triggered by a selloff on Wall Street.

The ASX 200 plunged by 4.3%, a drop not seen since the beginning of the pandemic in March 2020.

Unlike the US however, the Aussie market is not in bear territory – defined as a market that’s fallen by 20% since its last peak.

Nevertheless, nothing was spared today as the carnage spilled out to all 11 sectors. Tech was the worst performer down by more than 6%. Energy and Mining were not far behind, falling by 5% each.

Over the last two trading days, the S&P 500 has fallen by 7% and Nasdaq by 8% following the release of the US CPI print of 8.6% –  the highest level in 40 years.

The US Fed meets tomorrow (US time) to figure out what to do with inflation. The central bank has previously communicated that it will raise rates by at least 50bps.

Goldman Sachs and Jefferies have both said they expected a 75bp hike from the Fed.

“In light of recent developments, no one will criticize the Fed for hiking three quarters of a percent,” said the note out of Jefferies.

Meanwhile, metal prices continue to slide ahead of tomorrow’s key economic data from China, which is expected to paint a grim picture of the country’s economy.

China is also grappling with new Covid outbreaks in Beijing, even as some of the nation’s larger cities still struggle to jumpstart demand.

Iron ore slipped by more than 1% to $US133.15 a tonne in Singapore today, dragging down ASX metal miners and the Aussie dollar to US69.3 cents.

Bitcoin meanwhile, has also plunged by more than 10% in the last 24 hours to trade at US$22,800 at 4pm AEST.



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Lithium stock Lake Resources (ASX:LKE) was one of the rare performers today as it gained 10% on no specific news.

The LKE stock price has risen by 80% in the last six months, and the company will be added to the S&P/ASX 200 index at the next rebalancing on June 20th.



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Block Inc (ASX:SQ2) was the worst performing large cap today, losing by more than 15%.

Chalice Mining (ASX:CHN) and Fortescue (ASX:FMG) were the worst performing mining stocks, down by almost 9%, following China’s new Covid outbreaks.

Uranium stocks Energy Resources (ASX:ERA) and Paladin Energy (ASX:PDN) also tumbled by 12-15%.