ASX 200 tumbles as global stocks hammered in grim start to week

Australia’s ASX 200 plunged 125.70 points (1.46%) to 8499.40 in early Tuesday trading, reflecting broader global stock sell-offs. The decline follows a weak week for markets, with the S&P 500 dropping 2.64% and the Nasdaq 4.18% on Friday, though both saw slight Monday rebounds. South Korea’s Kospi index fell over 8%, driven by tech sector weakness. The downturn stems from stronger-than-expected US jobs data, with May non-farm payrolls rising by 172,000—far exceeding forecasts of 93,000. Investors now anticipate higher US interest rates, pressuring growth stocks. IGmarket analyst Tony Sycamore noted the US jobs report and potential inflation spikes could force the Federal Reserve to raise rates sooner than expected. Markets now price in a 27-basis-point rate hike by December 2026, reversing earlier expectations of prolonged low rates. The shift has heightened volatility, particularly in tech-heavy indices like the Nasdaq. Analysts warn further inflation data could exacerbate fears of prolonged monetary tightening. The ASX 200’s decline mirrors global trends, with Australian stocks lagging behind regional peers. Sector-specific risks, such as tech exposure, compound the downward pressure. Traders remain cautious ahead of key economic releases, including US inflation figures.