The Australian share market slumped on Wednesday, recording its worst one-day performance since 5 May and retreating from yesterday's record high close as investor confidence waned amid fresh United States inflation figures and escalating global trade tensions.
The benchmark S&P/ASX 200 Index closed 68.5 points or 0.8% lower at 8,561.8, with declines across nine of the 11 sectors.
Financials and Materials led the losses, two of the market’s most heavily weighted sectors.
Major banks came under selling pressure, with Commonwealth Bank down 1.2%, Westpac falling 1.5%, NAB declining 3.4%, and ANZ retreating 0.6%.
Heavyweight mining companies finished mixed, with BHP down 0.7%, and Fortescue Metals Group ticking 0.5% higher.
Rio Tinto added 0.2% after reporting a 13% year-on-year increase in copper-equivalent production and posting its strongest second-quarter iron ore output in the Pilbara since 2018.
The information technology sector outperformed, climbing 0.9% overall as market leaders WiseTech Global and Xero posted gains of 0.6% and 0.9%, respectively.
Fresh U.S. inflation data revealed that tariffs were beginning to impact consumer prices, prompting traders to dial back bets on a Federal Reserve rate cut in September.
According to the CME FedWatch Tool, the probability of a quarter-point cut fell to 52.4%, down from 58.9% a day earlier and 60.8% a week ago.
In company news, Newmont dropped 2.2% following a negative session on Wall Street. The decline came after the surprise resignation of Chief Financial Officer Karyn Ovelmen, as well as news that the company sold its stakes in Greatland Resources and Discovery Silver for approximately US$470 million.
Lendlease reversed early gains to finish 1.7% lower, despite announcing the acquisition of a premium development site at 175 Liverpool Street in Sydney’s CBD. The group plans to build a A$2.5 billion luxury residential tower on the site.
On the bond market, the 10-year yield fell 0.5% to 4.412%, while the 2-year yield declined 1% to 3.444%.
