ASX plummets as Wall Street sell-off spreads globally

ABC NEWS (Australia)

A sell-off across Wall Street spread across the world's share markets — including Australia — as the likelihood of a pre-Christmas interest rate cut in the United States fell below 50 per cent. Shares of major tech companies linked with the 'AI boom', including Palantir, Nvidia, Tesla and Oracle, were hit especially hard, while the original cryptocurrency bitcoin fell below $US100,000.

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00:00When America sneezes, the world catches a cold, as that old cliché goes.

00:06So the pessimistic mood on US stock markets spread to Europe, Asia and Australia, where

00:11the ASX and All Lords fell by a pretty steep 1.4%.

00:15As for what's behind this global sell-off, it's got something to do with interest rate

00:19cuts or lack thereof in the world's biggest economy.

00:22Earlier this week, markets were betting there was a pretty good chance of rates being slashed

00:26in the US before Christmas, and that a cut in January was guaranteed.

00:30But now, those odds don't look quite so good, after several members of the US Federal Reserve

00:35were out and about overnight, pushing back against this idea that the US economy desperately

00:39needs a rate cut right now.

00:42And the prospect of fewer rate cuts led to a severe allergic reaction across Wall Street's

00:46most overvalued tech stocks, which are being propped up by cheap money.

00:50So that's Palantir, Tesla, Nvidia and anything that's even remotely connected with the AI

00:55boom slash bubble.

00:57Back home, tech stocks on the ASX were hit quite hard, along with big banks like ANZ.

01:02But TPG Telecom was the worst performer by far, down more than 30% as it's trading ex-dividend.

01:09Basically, it means if you didn't buy its shares before today, you won't receive its next payout,

01:14which has gone to be a pretty big one, as it'll include an extra $1.61 per share, after TPG shareholders

01:20voted last week, to return $3 billion worth of excess capital to themselves.

01:25Meanwhile, oil prices rebounded, gold and iron ore were flat, Bitcoins fallen below US$100,000,

01:32and the Aussie dollar is buying just under US$65.5.

01:35And that's finance.

01:38It's the very constituent with oil and administration now.

01:39...

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01:42down...

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01:51Toronto também.

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