Wall Street retreats, ASX set to slide; Fed chief talks up inflation fight
The Australian sharemarket experienced a slight decline as investors reacted to a hawkish interest rate outlook from the US Federal Reserve. Despite the dip, the market concluded a positive month, though concerns regarding potential stagflation and rising oil prices remain prominent.
Why it matters
Market volatility and inflation fears in Australia reflect broader global economic anxieties regarding interest rate policies and energy costs.
— 5:58pm , first published August 31, 2026 — 5:22am
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Share A A A Australia’s sharemarket has started the week lower, but snatched a fifth straight calendar month of gains to cap off a broadly positive earnings season.
The S&P/ASX200 fell 16.3 points on Monday, down 0.18 per cent, to 9076, as the broader All Ordinaries slipped 22.9 points, or 0.25 per cent, to 9271.4.
There is strengthening faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term. AP The exchange handed back an early lead as traders digested a more hawkish US interest rate outlook, and as oil prices climbed on the back of renewed US-Iran fighting.
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