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Investors hoping for Australian sharemarket rebound

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All eyes are the on the Australian sharemarket today after it shed almost $90 billion in value yesterday.

The benchmark S&P/ASX 200 closed down 3.55 per cent or 246 points to 6686 points yesterday, although that was a slight rebound from earlier in the day, when it was down to 6600 points.

The early carnage was the ASX 200's worst loss since March 2020, following fears that the then-incoming COVID-19 pandemic would wreak huge damage to the world economy.

READ MORE: Aussie sharemarket wipes almost $90 billion in horror day

The dramatic fall on the local index followed those of Wall Street, where soaring inflation in the US has fuelled fears of an economic recession.

Investors will be closely watching the ASX when it opens at 10am day amid concern the run of share losses will continue off the back of US trading.

Self-funded retirees and older Australians will be concerned about the impact on superannuation accounts.

Market analysts suggest people with a super account balance of about $128,000 can expect to scratch off $6500 from the total value by the end of this financial year.

On Tuesday (US Eastern time), Wall Street dipped further but share trading was calmer than the previous day.

In afternoon trading , the S&P 500 was 0.5 per cent lower as investors braced for the Federal Reserve's announcement on Wednesday about how sharply it will raise interest rates.

READ MORE: Power grid back under strain as electricity shortfall predicted along east coast

The Dow Jones Industrial Average was down 173 points, or 0.6 per cent, and the Nasdaq composite was little changed after swinging between a gain of 1.1 per cent and a loss of 0.4 per cent.

Wall Street was officially dubbed a "bear market" on Monday, which in economic terms means prices are falling and investors are feeling encouraged to sell.

A bear market derives its name from the way a bear swipes downward with its claws, leaving marks that are synonyms with falling red lines on stock charts.

Additional reporting provided by Associated Press

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