| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39853.87 | -504.22 | -1.25% |
| S&P 500 | 5427.13 | -128.61 | -2.31% |
| Nasdaq | 17342.41 | -654.94 | -3.64% |
| VIX | 18.04 | 3.32 | 22.55% |
| Gold | 2394.60 | -21.10 | -0.87% |
| Oil | 77.51 | -0.08 | -0.10% |
US MARKET
US stocks faced their largest decline in over a year, driven by poor earnings from Tesla and Alphabet, which stoked concerns about the overvaluation of major tech firms.
The Nasdaq Composite fell 3.64%, marking its worst performance in two years, while the S&P 500 lost 2.13%, and the Dow Jones dropped 1.25%.
Tesla’s shares plummeted 12.33% after a significant profit drop and missed earnings estimates, despite advancements in AI and robotics.
Alphabet also fell 5% despite better-than-expected profits, as concerns about slow advertising growth on YouTube and high AI investment costs emerged. The downturn extended to other AI-focused firms, impacting global stocks like Britain’s Arm Holdings and Nvidia.
This sell-off reflects growing investor skepticism around the sustainability of high valuations for tech giants.
LOCAL MARKET
The Australian share market dipped slightly, mainly dragged down by property and energy sectors amid falling commodity prices and unimpressive tech earnings from the US.
The S&P/ASX200 index closed down 0.1% at 7,963.7, while the All Ordinaries was almost flat, down just 0.04% at 8,205.5.
Energy stocks struggled, with Woodside and Ampol seeing significant losses, and property shares like Lendlease and Goodman Group also fell.
In contrast, major miners like BHP and Rio Tinto posted minor gains. Despite mixed results among big banks, the overall market sentiment was cautious, influenced by underwhelming tech results from Tesla and Alphabet in the US, and weak private sector business activity in Australia.
The Australian dollar also hit a six-week low against the US dollar.