The S&P/ASX 200 Index (ASX: XJO) plunged below 8,650 points, shedding almost 120 points from Wednesday's close.
Buyers have since returned, but the benchmark remains down 0.69% at approximately 8,705 points in early afternoon trade.
The selling has reached some of our biggest companies, leaving investors with little relief across several sectors.
And with another interest rate decision approaching, the next few sessions could prove very important.
So, is there more pain to come?
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Wall Street gives investors little to cheer about
Aussie shares followed Wall Street lower after all 3 major US indices finished Wednesday's session in negative territory.
The Dow Jones Industrial Average Index (DJX: .DJI) declined 0.68%, while the S&P 500 Index (SP: .INX) slipped 0.75%.
The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) suffered the largest drop, falling 1.13%.
According to Reuters, rising oil prices and US Treasury yields weighed on sentiment, with the 10-year yield climbing above 5.1%.
That marked its highest level since 2007, as investors considered the possibility of further interest rate increases.
Mining heavyweights take a hit
Closer to home, BHP Group Ltd (ASX: BHP) has fallen 1.61% to $61.07 following an incident at its Escondida copper mine in Chile.
A worker reportedly died during maintenance work yesterday, prompting BHP to suspend all operational activities at the site.
The company hasn't indicated when production will resume at the world's largest copper mine.
Rio Tinto Ltd (ASX: RIO), which holds a 30% stake in Escondida, is also trading lower, slipping 0.93% to $166.06.
Banking shares aren't providing much relief either.
Commonwealth Bank of Australia (ASX: CBA) has declined 0.84% to $149.775, and Westpac Banking Corp (ASX: WBC) is down 1.32% to $34.30.
Jobs data adds another twist
Today's employment figures have given investors something else to consider ahead of next week's RBA meeting.
The Australian Bureau of Statistics reported that unemployment rose to 4.6% in August, compared with 4.5% in July.
Employment increased by 39,500 people, although all the growth came from part-time positions.
Full-time employment declined by 6,300, while the participation rate increased to 67.1%.
Higher unemployment shows the labour market is easing, which could give the RBA more reason to hold interest rates next week.
The RBA will announce its next interest rate decision on Tuesday, 29th September.
Can the ASX 200 hold 8,700 points?
The immediate test is whether the benchmark can stay above 8,700 heading into today's close.
Another break below 8,650 would put this morning's low back in focus.
With the RBA's decision on Tuesday and inflation figures due next Wednesday, I wouldn't be surprised to see further volatility.
