To The Moon

The Australian sharemarket fell sharply to a six-month low at the open on Friday as uncertainty around interest rates in the world’s largest economy following a stronger-than-expected US jobs report sparked a widespread selloff for global equities.

The S&P/ASX 200 index plunged 164.70 points, or 1.9% to 8388 at 10.10am AEDT – with a close at this level the lowest since late May. Wall Street initially started overnight trade up following Nvidia’s strong earnings beat but then soured as a mixed US September report showed 119,000 jobs created — well above expectations for 50,000 — but the jobless rate unexpectedly climbed to 4.4%.

This saw S&P 500 dive 1.6% and the tech-heavy Nasdaq 100 by 2.2%.

Capital.com senior market analyst Kyle Rodda said that the best explanation for the sell-off in the markets despite Nvidia’s stellar results and the higher odds of a December Fed cut is probably related to monetary policy uncertainty.

“While the chances of a cut are marginally higher, the markets are still implying a line ball decision in December. What’s more, there’s also the question of the trajectory for rates going into 2026 and whether the cutting cycle is going to be much shallower than previously thought,” he said.

All 11 index sectors were in the red led by materials. BHP dived 3%, Fortescue 3.4% and Rio Tinto by 2.9%. Gold retreated overnight as uncertainty deepened around whether the US Federal Reserve will deliver another rate cut this year, according to ANZ. Newmont dived 5.3%, Northern Star 4.2% and Evolution Mining by 4.7%.

Technology followed sharp falls on the Nasdaq amid concerns about whether interest rates will go down. Tech companies are sensitive to higher interest rates. WiseTech Global fell 2.7%, TechnologyOne by 3.1% and Life360 by 3.2%.

National Australia Bank fell 1.8%, Commonwealth Bank by 2%, ANZ 2.1%, and Westpac 2.3%.

In company news, Brett Blundy’s fashion jewellery chain Lovisa dived 10.9% as same store sales growth rate moderated from a stronger start.

Autosports Group fell 4.3% as it struck a deal to acquire ten Barry Bourke Motors dealerships in Victoria for about $34 million, securing a major footprint expansion and deepening relationships with key luxury and premium brands.

Accent Group tumbled 12.9% as it downgraded its earnings expectations after soft trading and heavy discounting dragged on sales and margins in the first months of 2026 fiscal year.

Kogan lost 2.5% as it posted adjusted EBITDA of $10.1 million for the first four months of trading in the 2026 financial year, down 31.3% across the period, with the decline driven by its New Zealand arm suffering a loss.

Plumbing and bathroom products group Reece fell 1.1% as it suffered an 18% fall in earnings before interest and tax in the September quarter to $129 million.

Webjet was unchanged at 89¢ as BGH Capital upped its takeover bid to 91¢ per share in cash for the shares it does not own. It comes after Helloworld made a takeover bid of its own earlier in the week for 90¢.