Sydney, May 9, 2026, 03:06 AEST
Australian stocks posted their steepest daily drop in nearly two months on Friday. The S&P/ASX 200 slid 133.7 points, or 1.51%, closing at 8,744.4, as fresh U.S.-Iran clashes wiped out Thursday’s brief gains. Financial shares were hit hard, down 2.25%. Heavyweights Westpac, National Australia Bank, Commonwealth Bank, and ANZ all declined. The All Ordinaries shed 1.39%.
The drop grabbed attention since it was widespread, driven by oil rather than just one disappointing report. ABC tallied losses close to $50 billion. AMP’s Shane Oliver flagged that if the Strait of Hormuz stays shut for longer, both the global and Australian economies could take a bigger hit. Rising fuel prices risk bleeding into everything from freight to packaging to what households pay each month.
The S&P/ASX 200, the primary gauge for institutional equity in Australia, covers 200 major ASX-listed companies based on float-adjusted market cap, according to S&P Dow Jones Indices. Banks, miners, real estate—if they slip, so does the index, leaving index-tracking investors with little room to maneuver.
Sydney wrapped with the index pulled down by financials, A-REITs—publicly traded real estate trusts—and utilities. Decliners dominated: 644 stocks dropped, against 463 gainers. The local VIX, which tracks implied volatility for the index via options, climbed 8.11% to 13.02.
Macquarie Group underscored how market swings can boost trading profits but still leave a stock exposed. The bank posted a full-year net profit of A$4.85 billion, a 30% jump that topped Visible Alpha consensus. Shares climbed to a record A$249.49, then pulled back. Chair Glenn Stevens described the conflict as a “very difficult shock” for policymakers. Reuters
News Corp stood out among major gainers. The company reported a 9% jump in fiscal third-quarter revenue to $2.19 billion. Net income from continuing operations moved up 13%. REA Group, its digital property arm, posted a 20% revenue increase to $325 million. CEO Robert Thomson described the group as “on track” for another record-breaking profit year. News Corp
Block shares climbed, with its Australia-listed securities also gaining ground, after the company bumped its 2026 gross-profit forecast up to $12.33 billion from $12.20 billion. “Cash App was the standout,” Seaport Research analyst Jeff Cantwell said to Reuters. Results from Visa and Mastercard, meanwhile, provided a stronger footing for payment stocks. Reuters
Tabcorp remained mired in regulatory uncertainty. The wagering company disclosed that AUSTRAC flagged “serious concerns” about its anti-money-laundering and counter-terrorism financing controls, and Reuters reported shares plunged 28% on Thursday. Tabcorp maintained the investigation was still in its early days and said every possible outcome was still on the table. Reuters
There’s risk in both directions. A truce headline or news of smoother shipping routes over the weekend might calm oil markets, but if fighting drags on, energy inflation hangs around. European shares slid Friday. Investors get it—any peace process won’t be “nice, clean, and linear,” as Moneyfarm chief investment officer Richard Flax put it. Reuters
