2026.02.0606:20:22UTC+00Australian Shares Fall on Broad Market Sell-Off

The S&P/ASX 200 index experienced a significant decline, dropping 2% to close at 8,708 on Friday, marking its lowest point in a month. This downturn was part of a wider global market upheaval spurred by concerns about substantial spending related to artificial intelligence. Over the course of the week, the index suffered a 1.8% decrease, its steepest weekly drop since November 2025. This occurred after the Reserve Bank of Australia reduced interest rates in February and hinted at further rate adjustments within the year.

The technology sector was notably affected, declining 3.4% to reach its lowest level in over two years. This was largely due to substantial capital expenditures announced by major US technology companies. Key players in the sector, Wisetech Global and Technology One, both saw their shares fall by approximately 5% each.

In addition, shares linked to the resources sector also experienced losses. Gold mining companies saw a 3.2% drop, contributing to a 2.7% decrease in the broader mining sector, as base metal prices continued to weaken. Specifically, major miners BHP and Fortescue recorded declines of 3.1% and 1.2%, respectively.

Moreover, merger discussions between Rio Tinto and Glencore concluded without agreement on valuation, effectively ending a deal that could have formed the largest mining company in the world.