Outlook for the day: Ugly. Futures action suggests the ASX 200 will open below 7000 for the first time since March.
ASX futures: down 97 points or 1.36%
Overnight themes:
US stocks close at their lowest since June as treasury yields surge in response to Wednesday's "higher rates for longer" message from the Federal Reserve.
The 10-year treasury yield trades at its highest in 16 years in the wake of the Fed's warning that rates may rise before the end of the year and stay there for much of next year. The two-year yield touches a level last seen in 2006.
Wall Street's main share indices all shed more than 1%. Rate-sensitive megacap stocks lead the retreat.
The S&P 500 takes its biggest hit since March, closing at a level last seen in June.
“The Fed thinks they can have a smooth landing, but if you raise rates and keep them at a hefty level for a sustained period of time, and oil prices move against you, how long can the consumer last?” - Peter Cardillo, chief market economist at Spartan Capital Securities.
Economic data suggest the Fed has more work to do to cool the economy. First-time claims for unemployment benefits are the lowest in eight months.
The real estate sector plunges 3.48%. Consumer discretionary sheds 2.88%, materials 2.05% and industrials and financials 1.6%. Health is the best of a bad bunch with a loss of 0.92%.
Just two of the Dow's 30 component companies resist the selling: UnitedHealth +1.83% and Disney +0.21%.
On the Nasdaq, Atlassian sheds 5.41%, Amazon 4.41% and Nvidia 2.89%.
Gold suffers its biggest fall in almost two months, logging its first decline in six sessions. Oil retreats for a third session.
Key events today:
Flash manufacturing/services PMIs - 9 am AEST
Europe/US manufacturing services PMIs - tonight
S&P 500: down 72 points or 1.64%
Dow: down 370 points or 1.08%
Nasdaq: down 245 points or 1.82%
Dollar: down 0.28% to 64.16 US cents
Iron ore (Dalian): down 0.4% to US$118.77
Brent crude: down 23 US cents or 0.3% to US$93.30
Gold: down US$27.50 or 0.4% to US$1,939.60
NYSE Arca Gold Bugs: down 2.19%
Copper (LME): down 1.44% to US$8,225
Nickel (LME): down 1.99% to US$19,165
Lithium carbonate (China spot): down 1.7% to US$24,188
Global X Lithium & Battery Tech ETF: down 2.91% (3-year low)
