Evening Wrap: ASX 200 slumps as iron ore price plunge rocks BHP, RIO and FMG (2026)

The ASX 200 experienced a significant downturn, shedding 99.6 points, or 1.13%, as iron ore stocks bore the brunt of a surge in Simandou production data, indicating sustained supply pressure. This, coupled with broader base metals weakness, gold's retreat, and heightened Middle East tensions, contributed to a broad-based sell-off across materials and technology sectors. Conversely, defensive sectors like utilities, healthcare, and consumer staples emerged as safe havens. The market's volatility underscores the delicate balance between supply and demand dynamics, with investors seeking stability in the face of global economic uncertainties.