ASX hit hard, but set to recover early

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The ASX posted its biggest drop in three weeks, but is set to open higher on the back of solid US stock performance.

The local exchange fell 2.4% on Thursday, its biggest decline in three weeks. The S&P/ASX index dropped 125.13 points, with banks and mines seeing the largest decline.

But Thursday's drop hasn't erased an overall increase of about 1% for the week so far, following a 4.2% drop last week. And the ASX is set to open higher, with the Dow, S&P 500 and Nasdaq all posting gains overnight in the U.S.