The benchmark S&P/ASX 200 dropped 85 points, or 1.27 per cent, to 6601, setting a new 52-week low.
The telecommunications industry was the best performing sector but still saw a 0.11 per cent drop, continuing a five-day decline.
Consumer product stocks saw a 0.64 per cent drop at the close of the trading day.
The IT sector saw the biggest value drop with a loss of 3.09 per cent, continuing a trend of losses across all sectors this week.
Banks were among the best performing stocks in early trading with Macquarie Group, the Bank of Queensland and NAB posting gains, while healthcare, technology and energy stocks were largely down.
The sluggish trading followed yesterday’s economic bloodbath for investors when the ASX200 closed down 3.55 per cent or 246 points to 6686 points, although that was a slight rebound from earlier in the day, when it was down to 6600 points.
The early carnage was the ASX 200’s worst loss since March 2020, following fears that the then-incoming COVID-19 pandemic would wreak huge damage to the world economy.
The dramatic fall on the local index followed those of Wall Street, where soaring inflation in the US has fuelled fears of an economic recession.
Investors will be closely watching the ASX when it opens at 10am day amid concern the run of share losses will continue off the back of US trading.
Self-funded retirees and older Australians will be concerned about the impact on superannuation accounts.
Market analysts suggest people with a super account balance of about $128,000 can expect to scratch off $6500 from the total value by the end of this financial year.
On Tuesday (US Eastern time), most US stocks dipped further but share trading was calmer than the previous day.
The S&P 500 fell 14.15, or 0.4 per cent, as Wall Street investors braced for the Federal Reserve’s announcement on Wednesday about how sharply it will raise interest rates. It wobbled between losses and gains through the day after a couple big companies flexed financial strength with stronger profits and payouts to shareholders.
The Dow Jones Industrial Average fell 151.91 points, or 0.5 per cent. The Nasdaq composite rose 19.12, or 0.2 per cent, after swinging between a a loss of 0.7 per cent and a gain of 1.1 per cent.
Wall Street was officially dubbed a “bear market” on Monday, which in economic terms means prices are falling and investors are feeling encouraged to sell.
A bear market derives its name from the way a bear swipes downward with its claws, leaving marks that are synonyms with falling red lines on stock charts.
Additional reporting provided by Associated Press
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