It's a sea of red out there on the Australian stock market today with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) having plummeted almost 1.3%. After having come close to breaching the 6,000 point level earlier in the week, it is now sitting below 5,900.
The local market's plunge came after a harsh night for global equities which saw the Dow Jones Industrial Average fall 1.62%, while the S&P 500 and NASDAQ indices both fell 1.46% and 2.37% respectively. While profit taking may have played a role in the market's dip, a decline in business spending and weaker growth forecasts were also to blame.
While the losses have been widespread locally, it is our big banks leading the downward charge. After having closed at a record high price yesterday, Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have both retreated 1.2% and 1.3%, while National Australia Bank Ltd. (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) have also retreated 1.3% and 1.4%, respectively.
Following a strong seven-day stretch, the market has also cooled on BHP Billiton Limited (ASX: BHP) which has fallen 1.1%. Telstra Corporation Ltd (ASX: TLS), Westfield Corp Ltd (ASX: WFD) and CSL Limited (ASX: CSL) are among the other stocks suffering today, down 0.7%, 2.8% and 1.2% respectively.
Time to panic?
It's amazing how easy it is to become overwhelmed or panicked on days like today. After all, it's never nice to watch your wealth topple in value.
Before you lose your nerve however, you should know that there is still a very good chance of the share market delivering further gains in 2015. Indeed, Citibank has even forecast the local market to hit 6,300 before the end of the year, suggesting plenty of upside potential for those investors willing to remain patient.
