The Australian sharemarket is poised for its most significant single-day drop since April 2025, when US President Donald Trump imposed widespread tariffs. The S&P/ASX 200 Index declined by 2.2 per cent, or 195.80 points, to 8693.40 as of 3.40pm AEDT. If the market closes at this level, it would mark the steepest fall since April 7, when a 4.2 per cent drop erased almost $110 billion from the ASX 200’s market capitalisation.
The downturn coincides with a US Treasury yield curve reaching its steepest level in over four years. This is driven by a combination of interest-rate cuts and concerns about ongoing inflation and the fiscal deficit. These factors are contributing to investor unease and a sell-off across various sectors of the Australian market.
Real estate is currently the worst-performing sector on the index. Goodman Group experienced a 5.7 per cent decrease, while Stockland Group fell by 2.9 per cent. These losses in the interest rate-sensitive sector follow the Reserve Bank of Australia’s decision to increase the cash rate on Tuesday.
These declines reflect broader market anxieties about interest rates and economic stability. Investors are closely watching both domestic and international economic indicators for signs of further volatility or potential recovery.
