The market has lost more than $60 billion over the past three trading days. The losses have been driven by continued falls in banking, consumer, and mining stocks. Concerns over the economic impact of Donald Trump’s tariff policies have weighed heavily on investor sentiment, prompting a broad-based sell-off.
Despite an initial rise of 0.4 per cent, the S&P/ASX 200 reversed its gains in the afternoon. The market closed 37.10 points lower, a 0.5 per cent drop. The index has now entered correction territory, having declined by more than 10 per cent since its peak last month. Among the 11 industry sectors, only real estate managed to hold its ground, ending the day flat. Meanwhile, the Australian dollar weakened by 0.4 per cent, trading at 62.93 US cents by late afternoon.
Real estate stocks were the only sector supporting the ASX. Industrial property leader Goodman Group advanced by 1 per cent, while property developer Mirvac Group edged up 0.3 per cent. However, Westfield owner Scentre Group surrendered earlier gains, finishing the session down 0.3 per cent. Evolution Mining posted a strong 4 per cent increase, while Meridian Energy gained 3.9 per cent.
Mining giants and financial institutions continued to struggle amid investor apprehension over Trump’s trade war. BHP fell by 1.8 per cent and Fortescue fell by 0.5 per cent. Rio Tinto lost 1.1 per cent on the day.
The financial sector also lost earlier gains and all major banks ended the session lower. Commonwealth Bank, Australia’s largest lender, declined by 0.6 per cent, while NAB fell by 0.5 per cent. ANZ lost 0.3 per cent and Westpac lost 1.5 per cent.
Consumer discretionary stocks faced renewed selling pressure. Electronics retailer JB Hi-Fi lost 1.4 per cent and Harvey Norman shed 1.6 per cent. The media sector also struggled, with Nine Entertainment declining by 1.5 per cent. Despite its strong year-to-date gains exceeding 30 per cent, the media group faced investor profit-taking.
Market optimism at the start of the session was influenced by a modest rebound on Wall Street, where investors responded positively to a softer-than-expected February inflation report in the United States. The S&P 500 gained 0.5 per cent overnight, despite volatile trading. However, the ASX was unable to sustain its upward momentum. Investors continue to assess the ramifications of Trump’s 25 per cent tariffs on aluminium and steel.
The ongoing market correction reflects broader investor concerns about the potential damage Trump’s policies could inflict on global trade. Uncertainty surrounding trade relations has already begun to undermine business and consumer confidence. Reduced spending by households and businesses in the US could have ripple effects on the global economy, creating further headwinds for financial markets.
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