Australian shares plunge to six-month low in sharp drop

Australian shares slumped to a six-month low in early trading today amid uncertainty about the strength of the US economy and new jobs data.

The S&P/ASX 200 index sunk 164.70 points, or 1.9 per cent, to 8388 just after opening AEDT, the lowest mark since May, reports the Australian Financial Review.

It came on the back of a wild day's trading on Wall Street.

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After initially soaring toward what seemed like its best day since May, with an early surge of 1.9 per cent, the S&P 500 erased all of it and fell 1.6 per cent.

The Dow Jones Industrial Average dropped 386 points, or 0.8 per cent, and the Nasdaq composite sank 2.2 per cent.

The sharpest losses again hit what used to be the market's biggest winners. Nvidia, cryptocurrencies and other areas that had soared with nearly relentless momentum, as traders feared missing out on more gains, forced the market lower.

Bitcoin dropped below $US87,000 ($135,000), down from nearly $US125,000 last month.

The US government's jobs report added to the market volatility.

The data showed hiring by US employers was stronger in September than economists expected, which may suggest the economy remains solid.

But it also said the unemployment rate worsened slightly, which could give the US Federal Reserve Bank reason to cut its main interest rate at its next meeting in December.

The last time the US stock market had swings in one day as wild as Thursday's was in April, when President Donald Trump shocked the world with his stiff "Liberation Day" tariffs.

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