The S&P/ASX 200 Index (ASX: XJO) is taking a beating today.
The benchmark index closed down 0.1% yesterday at 8,103.2 points. In morning trade on Wednesday, the ASX 200 stands at 7,947.7 points, down 1.92%.
The big early September selloff is reminiscent of what we witnessed in the first week of August. As you may recall, by the time the closing bell sounded on 5 August, the ASX 200 was down 5.7% in just three trading days.
But investors thinking about selling on down days like today should bear in mind the big rebound that followed. The index of the top 200 Aussie stocks soared 5.9% from 5 August through to this morning's open.
As for what's spooking the market today, let's have a look.
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Why is the ASX 200 tumbling today?
The Aussie stock market isn't the only one under pressure.
Overnight in the United States, the S&P 500 Index (SP: .INX) closed down 2.1%, and the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) plunged 3.3% on the first day of trading following the Labor Day holiday weekend.
ASX 200 and global investors alike are getting hit with at least three headwinds at the moment.
First, there are increasing concerns that the exuberance surrounding artificial intelligence (AI) stocks may have run ahead of itself in terms of the timeline required to deliver on those billions of dollars in investments flowing in.
Coupled with fears that Taiwan's semiconductor industry may be at risk from China, this saw the Nvidia Corporation (NASDAQ: NVDA) share price crash 9.5%. That pain may continue tomorrow, with the AI giant having been hit with a subpoena from the US Department of Justice relating to anti-trust issues after market close.
The other two macro tailwinds hitting the ASX 200 and international stocks are blowing out of China and the US.
Chinese residential and factory activity remains in the doldrums. And in the US, the Institute for Supply Management reported that manufacturing activity in the world's top economy declined again in August.
That's not only hitting tech stocks.
Amid lower demand concerns and with stalled Libyan crude production now expected to come back online, the Brent crude oil price dropped 4.7% overnight to US$73.75 per barrel.
That sees the Woodside Energy Group Ltd (ASX: WDS) share price down 2.2% in morning trade, while Santos Ltd (ASX: STO) shares are down 2.5%.
The iron ore price retreat also continued overnight, with the steel-making metal falling another 3.5% to US$93.45 per tonne.
That sees Fortescue Ltd (ASX: FMG) and BHP Group Ltd (ASX: BHP) also dragging on the ASX 200 performance today.
Fortescue shares are down 8.4% today, with the miner also trading ex-dividend today. BHP shares are down 1.6%.
Which could all be setting investors up for some fantastic bargain prices in the days ahead.
