At the closing bell, the benchmark index, the S&P/ASX200 tumbled 1.3 per cent, or 105.4 points, to 7782.5.Meanwhile, the broader All Ordinaries index fared slightly worse, shedding 1.4 per cent of its value to close at 8033.6.Analysts are pricing in just two rate cuts by the Federal Reserve this year, with some analysts forecasting the US central bank will keep rates on hold through to 2025.
NabTrade director of investor behaviour Gemma Dale said the recent pullback in the expected timing and speed of rate cuts by the US central bank was helping to cement the view that the Reserve Bank could keep interest rates higher for longer. Money markets are fully priced for just one rate cut by the Reserve Bank this year. Picture: AFP / Muhammad Farooq.
Investors flocked to gold miners as the safe haven commodity traded at a record high above $US2288 an ounce, while oil stocks also benefited as Brent crude prices neared just shy of $US89 a barrel amid escalating conflict in the Middle East.