ASX Market Wrap: Tech Stocks Drag as ASX 200 Slides, Utilities and Energy Shine

Key Highlights:

• S&P/ASX 200 falls 0.83% to 7,896.4, led by steep losses in technology and healthcare sectors.
• All Ordinaries drops 1.03%, while Small Ordinaries plunges 2.48%, underperforming broader indices.
• Tech stocks hit hardest, with the All Technology Index tumbling 4.13%.
• Utilities (+1.27%) and Energy (+0.89%) emerge as the best-performing sectors.
• Aurelia Metals (AMI) leads gainers (+9.76%), while Nickel Industries (NIC) plunges 17.88% as the worst performer.

Market Overview: ASX Slides as Global Sell-Off Hits Tech Stocks

The Australian stock market struggled on Tuesday, following a sharp sell-off on Wall Street that saw the Nasdaq tumble 4% and the S&P 500 shed 2.7% overnight. The S&P/ASX 200 fell 65.9 points (-0.83%) to 7,896.4, as investors rotated out of high-growth technology and healthcare stocks amid rising global economic uncertainty.

The All Ordinaries dropped 84 points (-1.03%) to 8,107.7, reflecting broad-based weakness across the market, while small-cap stocks bore the brunt of the sell-off, with the Small Ordinaries Index plunging 76 points (-2.48%).

Sector Performance: Defensive Plays Shine Amidst Market Turmoil

Eight of the ASX’s 11 sectors finished in the red, with technology (-4.13%) and healthcare (-4.30%) suffering the steepest declines. Defensive plays, however, saw strong buying interest:

The utilities sector was the standout performer, rising 1.27%, buoyed by a flight to defensive stocks. Energy stocks (+0.89%) also gained, helped by a stabilizing oil price.

Top Performers: Aurelia Metals and Vulcan Energy Rally

Despite the broader market weakness, several stocks posted strong gains. Gold and energy stocks were among the best performers, benefitting from their defensive nature and rising commodity prices.

Aurelia Metals (ASX: AMI) surged 9.76%, leading the gainers, as investors piled into gold stocks amid renewed fears of economic downturns. Vulcan Energy (ASX: VUL) climbed 4.88%, benefiting from strong demand for lithium stocks amid long-term optimism in the battery metals sector.

Biggest Losers: Nickel Industries Crashes 17.88%

On the flip side, technology and mining stocks were among the hardest hit, reflecting concerns over economic growth and falling demand.

Nickel Industries (ASX: NIC) suffered a brutal 17.88% decline, as concerns over weak global demand and falling nickel prices weighed on sentiment. Ramelius Resources (ASX: RMS) tumbled 14.70%, following a pullback in gold prices and profit-taking after recent strong gains.

Tech stocks were among the worst performers, with Pro Medicus (ASX: PME) down 10.81%, hit by rising bond yields and concerns about premium valuations in the sector.

Global Market Sell-Off Weighs on ASX

The ASX’s downturn mirrored a global sell-off, led by sharp declines on Wall Street:

The heavy tech sell-off in the NASDAQ (-4.00%) and S&P 500 (-2.70%) weighed on investor sentiment in the ASX, particularly hitting Australian technology stocks.

Commodities & Currency: Gold Steady, AUD Lower

Commodity prices were mixed, with gold holding firm at $2,901.70 (+0.08%), while copper edged lower by 0.24%.

Meanwhile, the Australian dollar (AUD) weakened, trading at $0.6274 against the US dollar (-0.07%), reflecting global risk aversion.

Outlook: Volatility to Continue as Investors Await Economic Data

The ASX Volatility Index (VIX) stood at 15.1, indicating normal levels of volatility. However, with economic uncertainty rising, investors are expected to remain cautious ahead of key economic data releases this week.

The market will be closely watching:

• US inflation data, which could influence Federal Reserve rate expectations.
• China’s economic indicators, crucial for Australia’s resource-heavy market.
• ASX earnings updates, particularly in the banking and mining sectors.