Investing.com - The S&P/ASX 200 is expected to extend last week's declines amid rising concerns that the US is heading for a severe downturn following a rise in US unemployment last week.
This sell-off comes just two sessions after the ASX 200 hit a record high of 8148 points. If the market continues to decline as expected, it could result in the largest two-day fall since September 2022 when Federal Reserve Chairman Jerome Powell alarmed investors with recession warnings.
Adding to the market's unease is the start of the annual company profit reporting season this week, along with the Reserve Bank’s policy decision on Tuesday.
Friday’s global market slide was exacerbated by concerns that massive investments by big tech companies in artificial intelligence are over-hyped. Further fueling market jitters was the news on Sunday that investor Warren Buffett sold off $116 billion worth of stocks in the second quarter.
Among local companies, Argo Investments Ltd (ASX:ARG) is set to report its results today, initiating a busy week of earnings reports that will include AMP Ltd (ASX:AMP), Life360 Inc (ASX:360), and Rea Group Ltd (ASX:REA).
On the bond markets, 10-year and 2-year rates were at 3.941% and 3.668%, respectively.