ASX Plunges Amid Oil Price Surge, Nvidia's AI Plans Shine
The Australian Securities Exchange (ASX) had its worst week since March as oil prices surged above $100 per barrel, causing investors to flee banks, retailers, and technology stocks.
Brent crude briefly touched $109.97 a barrel before retreating, but still ended the week more than 8% higher.
The energy sector was initially boosted by the price increase, with Woodside and Santos rising during the week. However, the market quickly turned negative as investors focused on the costs of a sustained energy shock.
Higher petrol, diesel, and freight costs can feed through to retailers, transport companies, miners, farmers, and households, leading to broader market losses.
The ASX 200 index fell 2.9% over the five trading days, closing near 8,741. Financials, consumer discretionary, healthcare, and technology shares all came under pressure.