The benchmark ASX 200 shed 129 points, or 2.15%, to close at 5,878 points, its lowest level since June.

The plunge followed a third consecutive session of selloffs in the US overnight as investors returned from the Labour Day long weekend with more pessimism for tech stocks.

Locally, the selloff was broad-based with every sector finishing in the red. Tech, banks and energy stocks were among the hardest hit.

Additionally, investors were weighing up the impact of AstraZeneca’s announcement that it was pausing the trial of its potential COVID-19 vaccine after a participant suffered a severe adverse reaction.

Pepperstone’s Chris Weston tells Brooke Corte we’re seeing a release valve being activated in the markets after several months of bullish gains.

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