S&P/ASX 200 Hits Three-Month Low Amid Inflation Fears

The S&P/ASX 200 index experienced a volatile start to the week, ending Tuesday at a more-than-three-month low of 8,672.50 points. The index fell 0.9 percent on September 15, reversing a modest 0.10 percent gain from Monday's session.

Monday's slight rise was supported by the healthcare, consumer staples, and financials sectors. Lovisa Holdings Ltd led the gainers with a 5.73 percent increase, while Megaport Ltd saw the steepest decline of 7.80 percent. Despite the index closing higher, falling stocks outnumbered advancing ones 604 to 460.

Tuesday's sharp decline was driven by losses in banks and commodity stocks, with miners falling 2.3 percent and gold stocks dropping 3.1 percent. Major mining firms BHP and Rio Tinto both saw shares lose more than 2 percent. Market volatility was fueled by rising bond yields, inflation concerns, and geopolitical tensions following Iranian attacks on Gulf shipping.

Investors remain cautious ahead of the US Federal Reserve's policy meeting, fearing that persistent inflation could trigger further interest rate hikes. This negative trend extended to the New Zealand S&P/NZX 50 index, which fell 0.6 percent.