ASX standouts: Thursday’s movers & gainers
Iron ore and uranium stocks tip higher amid a broad-based selloff across the ASX
Mentioned
KEY POINTS
- Interest rate sensitive sectors plunge amid hawkish commentary from the US Fed
- Afterpay and BNPL stocks extend losses as investors pivot away from tech stocks
- Iron ore miners and uranium stocks outperform
The ASX is down 1% at open following a sharp selloff across major US indices.
The markets hit the panic button after the minutes from the Federal Open Market Committee meeting in December was released overnight.
Fed officials expressed a more hawkish tone for more interest rate hikes in 2022 and plans to reel back its outsized $8.8 trillion balance sheet.
Amid the broad-based selloff on Wall Street, technology stocks were the most hard hit, which drove a 3.3% decline for the Nasdaq Composite.
ASX winners
The S&P/ASX Materials sector is the only sector in positive territory in early trade, buoyed by a strong uplift across iron ore majors.
Rio Tinto (ASX: RIO) is leading the charge, up 2.5%, Fortescue Metals (ASX: FMG) opened 1.9% higher and BHP (ASX: BHP) is trailing behind, up 0.7%.
There’s a lot of strength coming through to uranium stocks amid nationwide protests in Kazakhstan. Kazakhstan produced approximately 41% of the world’s uranium supply in 2020, according to the World Uranium Association.
Paladin Energy (ASX: PDN) is up 4.5%, Deep Yellow (ASX: DYL) jumped 9.8% and Boss Energy (ASX: BOE) opened 5% higher.
ASX losers
The S&P/ASX Technology sector is down -4% amid a rotation away from fast-growing, richly-valued tech stocks.
Afterpay (ASX: APT) plunged -9.8% to a fresh 15-month low after its soon-to-be parent company Block (formerly Square) fell -8.2% in overnight trade.
The broader tech sector is in a sea of red with WiseTech Global (ASX: WTC) sliding -3.6%, Seek (ASX: SEK) down -3.2%, REA Group (ASX: REA) skidding -2.9% and Xero (ASX: XRO) opening -2.2% lower.
Lithium and battery-related stocks that have surged in the past two days are taking a breather amid today’s selloff.
Pilbara Minerals (ASX: PLS) and Allkem (ASX: AKE) are retreating from all-time highs, down -2.3% and -2.4% respectively.
Smaller plays like Core Lithium (ASX: CXO), Australian Strategic Materials (ASX: ASM) and Lake Resources (ASX: LKE) are recording steeper losses, down around -5%.
