The Australian share market has plummeted, shedding more than $45 billion after US markets tanked overnight on recession fears.
The benchmark S&P/ASX200 dropped more than 140 points, or about 1.79 per cent, to 7820.1, after falling sharply at the start of Tuesday's session.
The broader All Ordinaries index was down about 1.9 per cent, or 156.4 points, to 8035.3 points.
The main index lost as much as $45 billion in market value, from Monday's close of $2.6 trillion, in the first half of the trading day.
have fanned investor uncertainty at a time when the growth outlook of the world's largest economy is being questioned.
"The market's reacting at the moment to a number of factors, but things like concerns of Trump's tariffs, that this could trigger an economic slowdown," CommSec market analyst Steven Daghlian told the Australian Associated Press.
"The unpredictability of the trade war was something that really weighed on markets last week."
On Sunday, and in the wake of weaker than expected US jobs and inflation data, Trump could not say if his protectionist policies could lead the US into a recession, sending shockwaves through global markets.
At the same time, the US Congress is scrambling to agree to a spending bill to avoid a government shutdown.
On Wall Street, the S&P500 lost 155.21 points, or 2.69 per cent, to end at 5,614.99 points, while the tech-heavy Nasdaq Composite lost 726.01 points, or 3.99 per cent, to 17,470.21. The Dow Jones Industrial Average fell 890.63 points, or 2.08 per cent, to 41,911.09.
'Magnificent Seven' down more than 5 per cent
The tech sell-off impacted the so-called 'Magnificent Seven' stocks of Amazon, Apple, Meta, Google owner Alphabet, Microsoft, Nvidia, and Tesla, which were all down more than 5 per cent.
Tech stocks account for roughly a third of the US share market, and the Magnificent Seven alone had a combined valuation of $29 trillion in February, greater than the GDP of any nation except the US and China.
"When you have seven stocks that are so large and have such a significant weight on an impact on the broader market, you know that's obviously a risk," Daghlian said.
All 11 Australian sectors on the local share market were trading lower than Monday's close, led by IT stocks which fell by 4.9 per cent.
The resource sector and financials, which account for more than half of Australia's share market by company size, were down 2.0 per cent and 1.7 per cent respectively.
Consumer discretionary stocks fell more than 2 per cent, while industrials, real estate and health care stocks were all down more than 1 per cent by midday.
The dollar was buying 62.68 US cents, down from 63.16 on Monday afternoon.
