A big technology sells off on Wall Street has resulted in the retreat of the Australian shares after the market opening this morning.
The S&P ASX 200 index benchmark has gone down about 63.5 points which is about 1.1 percent. In the afternoon, there has been a recovery of the shares, but in spite of that, S&P ASX200 was running at a loss of 29 points which was about 0.5 percent.
The whole procedure of sell-off was not extreme in nature in the United States where China trade tension has a very deep decline in all the major technology stocks. There was a hefty drop of about 2.5 percent in the Dow Jones Industrial Index in New York and there was also a drop of 1.8 percent in the S&P 500 index. Nasdaq Composite Index, which is basically a technology-heavy went in a loss of 2.1 percent, which has companies like Amazon, and Facebook in it.
The Nasdaq Composite is right now running at almost 15 percent, which is a record closing high at 8109.69 as on 29th August. All the companies from the United States, which are technology-based have faced a collective loss of about $1 trillion dollars in the market since the month of June this year. Shares of all the big technology companies like Google, Netflix, Amazon, and Apple have dropped almost by 20 percent since 1995-2000 which was basically the dot-com bust.
According to financial analyst, all the tempered responses which are on the Australian Securities Exchange was all because of the key market indicators which are all weighted towards all the technology companies. All the big miners which have been dominating the major markets for quite some time are on ASX lost ground.
All the base metal prices have seen a great decline. All the shares of BHP have fallen almost 3.1 percent, which is about $31.64 and the share prices of Tinto also dropped 3.1 percent to $77.38. The share prices of Wesfarmers have also gone down to about 27 percent.