By Jonathan Barrett
Publication Date: 2025-11-20 02:21:00
Global stock markets – including in Australia – plunged before the world’s largest company, U.S. chipmaker Nvidia, reported rising profits and an upbeat outlook, reassuring nervous traders.
Still, the results will spark further debate about whether market optimism around artificial intelligence is justified. But is it a bubble about to burst? And why is the Australian stock market affected?
What caused declines in the Australian market?
The Australian market was led by Wall Street, where there are lingering concerns that the AI-powered rise of tech stocks may have gone too far, too fast.
While the Australian Stock Exchange (ASX) is dominated by banks and miners – rather than Big Tech – it had benefited from positive sentiment that drove Australian and US markets to record highs ahead of a recent sell-off.
Australia’s benchmark S&P/ASX 200 hit a record 9,115 points in October before quickly falling by around 7%.
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