The New Zealand sharemarket has opened sharply lower after a day of heavy losses on Wall Street.
NZX sign Photo: RNZ / Angus Dreaver
It comes after the NZX top 50 had its worst single session in four months yesterday, falling 1.9 percent or 211 points to 10,925, the lowest close since June 2020.
It deepened its losses this morning, falling 1.7 or 190 points during early trading.
US stocks plunged this morning, with the S&P 500 slumping 3.9 percent when markets closed at 8am New Zealand time.
The Dow Jones fell 876 points or 2.8 percent and the tech heavy Nasdaq fell 4.7 percent.
The sell-off is being driven amid worries over whether the US Federal Reserve will be able to tame inflation without triggering a recession.
The S&P 500 is now in what's known as a bear market, as the benchmark is down more than 20 percent from its January record.
A close of more than 20 percent below the record high confirms that the index is in a bear market, according to a commonly used definition.
It is the first time the S&P 500 has confirmed a bear market since the 2020 Wall Street plunge brought on by the Covid-19 pandemic.
The Federal Reserve's next interest rate decision will be released on Thursday morning New Zealand time, with expectations of a 50 basis point hike, but forecasts for a 75 basis point hike have increased.
