ASX falls as miners slump; WiseTech shares tumble
On Wall Street, US stocks fell sharply on Friday after reports showed that worries among consumers and businesses about President Donald Trump’s policies may be hitting the US economy.
The S&P 500 sank 1.7 per cent for its worst day in two months. The Dow Jones dropped 748 points, or 1.7 per cent, and the Nasdaq composite tumbled 2.2 per cent.
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The losses accelerated through the day following several weaker-than-expected reports on the US economy. One suggested business activity is close to stalling, with growth slowing to a 17-month low. The preliminary report from S&P Global said activity unexpectedly shrank for US services businesses, and many in the survey reported slumping optimism because of worries about Washington.
“Companies report widespread concerns about the impact of federal government policies, ranging from spending cuts to tariffs and geopolitical developments,” said Chris Williamson, chief business economist at S&P Global Market Intelligence. “Sales are reportedly being hit by the uncertainty caused by the changing political landscape, and prices are rising amid tariff-related price hikes from suppliers.”
A separate report said US consumers are also preparing for higher inflation, in part because of potential tariffs that could raise prices for all kinds of imports. They’re broadly expecting prices to be 4.3 per cent higher 12 months from now, which is a big jump from their forecast of 3.3 per cent inflation last month, according to a survey by the University of Michigan. That fits with preliminary data in the survey earlier this month.
Among US households, though, a divide is evident underneath the surface. Expectations for inflation are rising for political independents and Democrats, while falling slightly for Republicans.
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A third economic report, meanwhile, said sales of previously occupied homes were weaker last month than economists expected. Relatively high mortgage rates, along with expensive prices for homes, have been hurting sales.
Within the big companies of the S&P 500 index, three out of every four stocks fell. Everything from Big Tech stocks that have been bid up amid the artificial-intelligence frenzy to airlines to metals companies dropped. Nvidia sank 4.1 per cent. United Airlines lost 6.4 per cent, and Newmont Mining fell 5.7 per cent.
