The Australian market is trading sharply lower on Thursday, reversing some of the gains in the previous two sessions, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling well below the 8,650 level, with losses across most sectors led by mining and technology stocks. Energy stocks are the only bright spot.
Spiking crude oil prices have fueled inflation concerns and raised expectations of a rate hike by the Reserve Bank of Australia as early as next week, with officials warning that higher energy costs could push inflation above its target band.
Markets are now pricing in about a 75 percent chance of a rate hike next week, up from less than 30 percent earlier this week.
The benchmark S&P/ASX 200 Index is losing 131.90 points or 1.51 percent to 8,611.60, after hitting a low of 8,608.90 earlier. The broader All Ordinaries Index is down 140.30 points or 1.56 percent to 8,836.50. Australian stocks ended notably higher on Wednesday.
Among major miners, Rio Tinto and Mineral Resources are down more than 1 percent each, while Fortescue is declining more than 2 percent and BHP Group is losing almost 2 percent.
Oil stocks are mostly higher. Santos and Woodside Energy are adding more than 1 percent each, while Beach energy is gaining almost 3 percent. Origin Energy is flat.
In the tech space, Afterpay owner Block is declining almost 4 percent, Xero is sliding almost 6 percent and Appen is slipping more than 4 percent, while WiseTech Global and Zip are tumbling more than 5 percent each.
Among the big four banks, Westpac and Commonwealth Bank are losing more than 1 percent each, while ANZ Banking is down more than 2 percent and National Australia Bank is declining almost 2 percent.
Among gold miners, Resolute Mining is declining more than 3 percent and Newmont is slipping more than 2 percent, while Genesis Minerals, Evolution Mining and Northern Star Resources are losing more than 1 percent each.
In the currency market, the Aussie dollar is trading at $0.714 on Thursday.
On Wall Street, stocks showed a lack of direction over the course of the trading day on Wednesday, extending the lackluster performance seen in the previous session. The major averages once again spent the day bouncing back and forth across the unchanged line.
The major averages eventually closed mixed for the second straight day. While the Nasdaq inched up 19.03 points or 0.1 percent to 22,716.13, the S&P 500 edged down 5.68 points or 0.1 percent to 6,775.80 and the Dow slid 289.24 points or 0.6 percent to 47,417.27.
Meanwhile, the major European markets moved to the downside on the day. While the German DAX Index tumbled by 1.4 percent, the U.K.'s FTSE 100 Index fell by 0.6 percent and the French CAC 40 Index dipped percent.
Crude oil prices skyrocketed on Wednesday as the Middle East conflict fails to show any indication of calming down soon. West Texas Intermediate crude for April delivery was up $4.21 or 5.04 percent at $87.66 per barrel.
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Market Analysis
May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.