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ASX slides as Wall Street suffers worst sell-off since tariff shock
Australian shares have fallen sharply after a rout in US technology stocks sent Wall Street plunging, wiping out gains following the midterm elections.
- The ASX 200 fell 1.25 per cent in early trading on Friday after Wall Street suffered its worst session since April 2025.
- The Nasdaq plunged 5.52 per cent as investors sold technology stocks amid growing concerns about the future of AI investment.
- Nvidia, AMD and other chipmakers fell sharply as investors weighed the prospect of tighter US regulation.
Australian shares have fallen sharply after Wall Street suffered its worst sell-off in more than 18 months, as concerns over artificial intelligence spending and potential US regulation rattled global markets.
The benchmark ASX 200 was down 1.25 per cent to 8952 points shortly after 10 am AEDT on Friday, reversing part of Thursday’s 2.61 per cent rally.
The losses followed a turbulent session on Wall Street, where the S&P 500 plunged 4.36 per cent to 7353.73 points, its biggest daily decline since US President Donald Trump’s tariff announcement in April 2025.
The technology-heavy Nasdaq slumped 5.52 per cent, entering correction territory after falling more than 10 per cent from its recent peak, while the Dow Jones dropped 3.44 per cent.
Market turmoil comes as Aussie investors assess the outlook for interest rates, economic growth and corporate earnings amid heightened political uncertainty in Washington.
Technology stocks led the losses as investors reassessed the outlook for the artificial intelligence industry following the Democrats’ sweeping victories in the US midterm elections.
This week’s US election result has raised expectations of tighter scrutiny of data centre developments, including their growing demands on electricity and water supplies.
“Markets and businesses should not equate congressional gridlock with policy calm,” CBA Senior Geo-Economics Analyst Madison Cartwright said in a statement on Friday. “Policy is likely to become less predictable rather than more moderate.”
Chipmakers were among the hardest hit, with Nvidia tumbling 9.3 per cent, Advanced Micro Devices losing 17.3 per cent and Micron Technology falling 17.5 per cent.
The Philadelphia Semiconductor Index plunged more than 12 per cent as concerns spread about whether the enormous sums being invested in AI infrastructure could be sustained.
The selling extended across the broader US market, with all 11 sectors of the S&P 500 finishing lower.
Goldman Sachs reported that heavily leveraged investors were unwinding crowded technology positions.
The Australian dollar also weakened overnight, trading around US69.3 cents on Friday morning.
Meanwhile, Brent crude oil rebounded to around US$99 a barrel, reversing some earlier losses after the US election result.
Topics: ASX, Markets, Technology, Wall Street