Australia is waking up to a grim scene after US stock markets tumbled overnight.
The S&P 500 Index (SP: .INX), plunged 3.56%, cancelling out Wednesday’s euphoric gain.
The tech-heavy Nasdaq Composite (NASDAQ: .IXIC) was hit harder still. As most of Australia snored, it plummeted 4.99% in its worst session since June 2020. It’s now at its lowest level since 2020.
The Dow Jones Industrial Average Index (DJX: .DJI) also suffered in Thursday’s session overseas. It gave up more than 1,000 points, or 3.12%.
The US stock market’s downturn could spell bad news for the S&P/ASX 200 Index (ASX: XJO) on Friday, particularly ASX 200 tech stocks, which often react to the Nasdaq’s movements.
Here’s what might have dinted the US stock market overnight.
US stock markets flop in Thursday’s session
US stocks struggled overnight, with the nation’s markets giving up Wednesday’s notable gains.
The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average launched 2.9%, 3.2%, and 2.8% respectively on Wednesday, likely driven by positive sentiment out of the United States Federal Reserve.
However, Federal Reserve chair Jerome Powell also commented that the entity wasn’t “actively considering” hiking interest rates by another 0.75%.
Powell’s confidence appeared to quell the market’s nerves on Wednesday. However, concerns apparently reared their head once more in yesterday’s (Aussie time) session.
Some US stock market favourites dragged on the NASDAQ-100 (NASDAQ: NDX) overnight.