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Topic:Stock Market
US stocks plunged as concerns about the American economy saw investors head for the exits.
The ASX looks set to follow the negativity, after the Nasdaq dropped 4 per cent for its worst day since September 2022.
Follow the day's financial news and insights from our specialist business reporters on our live blog.
Disclaimer: this blog is not intended as investment advice.
By Stephanie Chalmers
Prices current around 7:45am AEDT.
Live updates on the major ASX indices:
By Michael Janda
Dan Ives is, to say the least, an optimist when it comes to most of the big tech stocks.
His latest note is true to form, urging investors to resist panic selling.
"We have been on the phone with investors constantly over the last week walking through the scenarios for the Mag[nificent] 7 and AI Revolution and why we remain firmly bullish and believe tech stocks will ultimately make new all-time highs during the second half of 2025 despite a disaster panicked sell-off to start the year," he wrote with his colleagues in a note.
"We believe this is Year 3 of what will be an 8-10 year build out of the AI Revolution. Will there be some near-term headwinds from Trump Policy … yes … but this is no way changes the $2 trillion of AI Cap Ex on the horizon," the Wedbush Securities analysts continue.
"We are in the early stages of a 4th Industrial Revolution and it's being driven by a handful of Big Tech players with enterprise AI, consumer AI apps/LLM models, autonomous, robotics, and many derivatives of this once in a 40-year spending wave ahead of us."
The Wedbush team argues that the sell off is offering "golden opportunities" to get into the market.
"This will prove to be a generational time to own tech winners with patience and not the time to throw in the white towel on this bull market."
But there are plenty of other analysts warning that it is a very dangerous time to catch a falling sword.
Pepperstone's Chris Weston being one of them.
"We're trading the collective flows in the market, and the aggregation of all beliefs — many of which are turning increasingly emotional and even irrational — and standing in the way of this flow of capital and attempting to time a turn without the price action giving you that confidence just increases the risk of ruin," he wrote this morning.
And, please remember, we are just republishing the opinions of traders and analysts — nothing on this blog is financial advice.
By Stephanie Chalmers
Taking a closer look at where the pain was felt on US markets overnight, here's how the S&P 500 sectors finished up:
The worst individual falls were for:
It was another bad day for Tesla after a rough few months for the stock — and the company, with sales taking a hit globally.
You can read more here:
By Stephanie Chalmers
We're still just under two hours off local trade, but there's plenty of commentary flowing through on the overnight stock market rout.
Here's what ANZ Research analysts Brian Martin and Daniel Hynes make of it all:
"The sell-off in stock markets extended as confidence in the US growth outlook continued to falter, President Trump refused to rule out a recession and Kevin Hassett, chair of the US National Economic Council, said that negative Q1 growth expectations are because of Biden and the timing of tariffs.
"No let-up in uncertainty seems likely in the near term given reciprocal and other tariffs will be announced in April with more to follow in May.
"The US administration is viewing current uncertainty-related weakness as an 'adjustment' as the economy transitions to fairer trade and a smaller role for the federal government.
"More immediately, attention is also focused on the US government's funding bill this week that is needed to avert a partial government shutdown from Friday.
"The House is expected to vote on a package Tuesday, which if passed will then go to the Senate."
By Stephanie Chalmers
Look, it's probably not the worst day to have your shares suspended from trade, let's be honest.
Despite Star Entertainment having found a fix for its immediate crunch with a refinancing deal and plans to sell off its Brisbane casino stake, plus US giant Bally's lobbing an alternate offer at the eleventh hour, its issues continue.
Its shares remain suspended from the ASX as it is yet to sign off on its half-year financial accounts.
And as chief business correspondent Ian Verrender writes, while Australians remain big gamblers, the technology has changed — and that's not good for the casino business.
Read more here:
By Stephanie Chalmers
The price of cryptocurrency Bitcoin fell to a four-month low, down by more than 5 per cent against the US dollar.
That's despite the US president signing an executive order to establish a Bitcoin strategic reserve at the end of last week, with crypto executives joining Donald Trump at the White House.
Here's how it's fared over the past 6 months:
If you want to find out more about what exactly a Bitcoin strategic reserve entails, read this piece from business reporter David Chau:
By Stephanie Chalmers
US markets are no stranger to the Trump rollercoaster but comments he made in an interview with Fox News on Sunday (US time) seem to have left investors particularly spooked.
In response to a question about the chances of a recession, the president didn't rule it out:
"I hate to predict things like that…
"There is a period of transition, because what we're doing is very big."
That was enough to spark the sell-off and send the Nasdaq to its worst session since September 2022, despite efforts from senior Trump officials to walk back from the negativity.
"Headlines of recession risk rising (from low levels) abound," NAB's head of market economics Tapas Strickland wrote.
"Several US banks updated their subjective recession probabilities: Goldman's on Friday lifted theirs to 20% from 15%, while JP Morgan lifted to 40% from 30%."
By Stephanie Chalmers
Tariff uncertainty and concerns about the US economy weighed on stocks overnight.
In the wash up of the sell-off, Reuters has gathered some commentary from US investors.
Here's what they're putting the negativity down to:
"Has the economy really fallen off a cliff in the last six weeks? No. And yet the perception is dramatically different today than it was at the end of last year." Edward Al-Hussainy, Columbia Threadneedle Investments
"They said there's going to be a period of volatility, there's going to be a rough patch here … the stock market is trying to digest that, and they're discounting that out into the future with lower valuations." — George Cipolloni, Penn Mutual Asset Mgmt
"The market is already starting to price in the slowdown at this point, but it's too soon to tell. At this point the problem is the uncertainty, so we'll see what happens." — Joe Saluzzi, Themis Trading
"International investors are coming out of the US markets and they're going elsewhere. Today, it's flying out of everything. You have people unwinding that carry trade. This isn't something that just unwinds in a day or two, you could see this get ugly." — Dennis Dick, Triple D Trading
By Stephanie Chalmers
Morning! I decided to drop the good because it certainly wasn't for the overnight session on global markets.
Due to daylight savings ending in the US, we've had Wall Street close a short time ago.
The tech-heavy Nasdaq index tumbled 4 per cent for its worst one-day drop since September 2022.
The broader S&P 500 lost 2.7 per cent, while the Dow shed 2.1 per cent.
ASX futures are pointing down, but not by anywhere near the same magnitude so far — but hey, it's early days.
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