The benchmark S&P/ASX200 finished down 5.30 per cent on Friday at 4,842.40 points, stifling hopes of four days of growth.
The broader All Ordinaries also finished lower, down 5.08 per cent at 4,874.0 points.
All four major banks fell by more than 6 per cent, while the healthcare sector also tumbled 7.1 per cent.
What happened this morning?
Australian markets jumped at the open on Friday, raising hopes the local indexes could etch their fourth day of growth in a row.
The S&P/ASX200 index was up 2.34 per cent at 10:20am AEDT, reaching 5,232.90 points, while the All Ordinaries was up 2.46 per cent at 5,261.40 points.
The lift comes after a strong night on Wall Street, where the market rallied on the US Senate passing the huge AU$3.3 trillion stimulus package.
And this morning’s rise builds on the 16 per cent growth the ASX200 has seen since Monday.
What happened last night?
Overnight, US stocks rose sharply after the US Senate passed the unprecedented $3.3 trillion emergency aid bill to shore up the world's largest economy amid the coronavirus outbreak.
The House will vote on the bill on Friday.
US equities rose despite reports that US jobless claims had topped 3.2 million, however the US dollar traded lower against all of the major currencies.
IG Markets analyst Kyle Rodda says that for all the optimism, some stark realities remain about the current climate for the global economy.
"US jobless claims data came-in far worse than expected... and the COVID-19 crisis is still well out of control," he said in a note.
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