The Australian share market experienced a significant downturn on Thursday, with the S & P/ASX200 shedding more than 90 points, equivalent to a 1.4 percent drop, closing at 7065.2 points.
This marked the lowest level the index has seen in the past 10 weeks. The abrupt sell-off came as a direct response to signals from the US Federal Reserve, which suggested that interest rates would need to remain higher for a more extended period than initially anticipated.
While the Fed chose not to raise rates in line with market expectations, it was the central bank’s notably hawkish tone that set off a wave of unease and prompted a widespread selloff in US equities.
The broader All Ordinaries index performed nearly as poorly, experiencing a decline of 1.4 percent or 95.3 points, ultimately settling at 7,266.6 points.
During this downturn, the benchmark index displayed a uniform downward trend, with all 11 sectors recording losses. The energy and financial sectors were particularly hard-hit, posting declines of 2 percent and 1.8 percent, respectively.
In the energy sector, Woodside, one of the industry giants, saw a decline of 2.6 percent, bringing its stock price to $36.04. Ampol experienced a notable slump of 1.6 percent, with its shares closing at $32.71, while Santos also recorded a 1.4 percent drop, resulting in a closing price of $7.59.
The impact of this downturn extended beyond the energy sector, affecting the big four banks, all of which saw their stock prices decrease by more than 1.5 percent. Westpac bore the brunt of this decline, with a substantial 2.5 percent drop, closing at $20.99. Additionally, the healthcare, real estate, and materials sectors also suffered losses exceeding 1 percent.
