Australian shares fell on Friday, hitting a new 20-day low, as a selloff on Wall Street intensified.

The S&P/ASX 200 Index fell 180.40 points or 2.03% to 8,708.80 at market close.

Concerns over artificial intelligence, precious metals, and cryptocurrencies drove the selloff on Wall Street. However, silver saw a 0.5% increase to $71.61 per ounce, while gold climbed 0.9% to $4,815.19 per ounce.

On the domestic front, the Reserve Bank of Australia's annual report said that the risks are currently more on the inflation side and that the productivity gains for Australia from adopting AI will take decades. The central bank is ensuring that ASX's transition from the CHESS system does not compromise financial stability.

In company news, Rio Tinto Group (ASX:RIO) said that it is no longer considering a deal with Glencore for a possible merger of some or all of their businesses. The company said it could not strike a deal that would deliver value to its shareholders.

REA Group (ASX:REA) reported Friday fiscal first-half earnings of AU$2.545 per share, down from AU$3.339 a year earlier. Revenue for the six months ended Dec. 31, 2025, was AU$915.8 million, compared with AU$872.9 million a year earlier. The firm's shares fell nearly 7% on close, reaching a two-year low point.

Lastly, Web Travel Group (ASX:WEB) said that the Special Delegation of the Balearic Islands of the Spanish Tax Agency has started an audit of the company's Spain-based unit. The audit concerns the unit's direct taxes for the period April 2021 to March 2024 and indirect taxes for the period January 2022 to December 2025. Shares of the firm fell nearly 30% on market close, reaching a five-year low.