Australian share market plunges by 2.5 per cent in early trade with $54billion wiped off

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Australia’s share market has lost $54billion in the opening half hour of trade as local investors copied their American counterparts by dumping tech stocks.

The Australian Security Exchange’s benchmark S&P/ASX200 dived by 2.48 per cent, or 151.3 points, to 5,961.3 points by 10.24am AEST.

This was the worst fall since mid-June, with Australian investors reacting to American investors dumping Apple, Facebook, Microsoft, Amazon and Tesla stocks.

CommSec market analyst Steven Daghlian said virtually all sectors were in the red after the local market reacted to Wall Street’s biggest one day decline in three months.

‘It’s pretty much the worst day we’ve had since the middle of June and it’s really because the US market had its worst day in three months,’ he told Daily Mail Australia. 

‘It comes down to partly questions being asked about the extent of the rally in those tech stocks in particular recently.’

Australia's share market has lost $54billion in the opening half an hour of trade. The benchmark S&P/ASX200 index on the Australian Securities Exchange dived by 2.48 per cent, or 151.3 points, to 5,961.3 points

Australia’s share market has lost $54billion in the opening half an hour of trade. The benchmark S&P/ASX200 index on the Australian Securities Exchange dived by 2.48 per cent, or 151.3 points, to 5,961.3 points

Australian investors reacted by selling technology stocks, with Afterpay falling by 4.24 per cent within the first half-hour of trade.

This fall mirrored what happened on Wall Street overnight, with Amazon shares diving by 4.63 per cent.

American investors dumped their shares in tech giants as data suggested a long and difficult economic recovery in the world’s biggest economy. 

The three main indexes all slumped, with the Nasdaq Composite technology index diving by 4.7 per cent, or 567.14 points, to hit 11,489.30 by mid-afternoon trade.

Mr Daghlian said strong gains for American tech stocks in 2020 were now making share markets nervous. 

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