The share market is sharply lower, giving back Wednesday’s gains and following US stocks south.

After Wall Street closed almost 1.5 per cent lower overnight, the Australian market fell two per cent on opening and stayed there.

A drop in the August unemployment rate to 6.2 per cent did nothing to cheer investors.

The energy sector, a recent star performer, has led the march downwards.

KEY FACTS

* At 1201 AEST on Thursday, the benchmark S&P/ASX200 index was down 118.0 points, or 2.26 per cent, at 5,103.1 points.

* The broader All Ordinaries index was down 113.7 points, or 2.17 per cent, at 5,123.2 points.

* The September share price index futures contract was down 111 points at 5,104 points, with 26,150 contracts traded.

* National turnover was 1.01 billion securities worth $3.0 billion.