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Aussie stocks nosedive 2 per cent as tech companies fall

Published: (Updated: ) in Australian News by .

Soon after opening the ASX 200 shed millions as investors pulled their positions from technology companies.

The Australian stock market has nose-dived more than 2 per cent upon opening as investors go quiet on simmering tension over Victoria's stage four restrictions.

Soon after trade began the benchmark S&P/ASX 200 fell 2.3 per cent to 5872 points, marking a fresh five-week low for the bourse.

Following in the footsteps of their American counterparts, Aussie tech stocks such as Afterpay, Zip and Xero all plummeted in early trade.

READ MORE: Apple is first US company to be valued at US$2 trillion

Oil and mining companies felt heavy losses, as did the major banks – Commonwealth Bank fell 2.9 per cent immediately after the market opened.

Overnight Wall Street failed to recoup heavy losses it incurred last week.

The Dow Jones Industrial Average fell more than 600 points or 2.3 per cent, while the Nasdaq – known for its quantity of tech stocks – fell 4.1 per cent.

READ MORE: Aussie retailers forced online as consumer spending changes during COVID-19

The Nasdaq is now thought to be in a correction after losing more than 10 per cent of its value in three consecutive days.

According to US analysts, tech stocks are falling in tandem with oil prices and reverting back to levels they were at prior to the pandemic.

While tech stocks were hurt overnight, they have enjoyed considerable success in 2020: pandemic lockdowns meant consumers were spending far more time at home on electronic devices.

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In this photo provided by the New York Stock Exchange, employees work on the partially reopened trading floor, Tuesday, May 26, 2020. Stocks surged on Wall Street in afternoon trading Tuesday, driving the S&P 500 to its highest level in nearly three months, as hopes for economic recovery overshadow worries about the coronavirus pandemic. (Courtney Crow/New York Stock Exchange via AP)

Online shopping giant Amazon near on doubled its share price in 2020, hitting a high of $3552 and catapulting its founder Jeff Bezos into the position as the richest man in history.

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Source: 9News

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