Australian shares have crumbled from four-month highs, as surging US bond yields and renewed oil volatility overshadowed a recently softening local interest rate outlook. The S&P/ASX200 dropped 74.1 points on Thursday, down 0.82 per cent, to 8,964.5, as the broader All Ordinaries fell 77 points, or 0.84 per cent, to 9,122.7. "What stands out is how quickly the Australian market is swinging between competing inflation signals," Vantage senior market analyst Hebe Chen told AAP. Australian shares would likely remain caught in the weaker global mood as companies headed into earnings season, despite the local exchange having less exposure to an unwinding of recently red-hot technology stocks. In company news, Domino's Pizza shares soared nine per cent after investors were impressed by the company's balance sheet review and better-than-expected earnings guidance.