Wednesday: S&P 500 Slides to One-Month Low

The S&P 500 slipped to a one‑month low, dragged down by a sharp sell‑off in AI‑focused tech stocks as investors question lofty valuations. The Nasdaq fell nearly 2%, while the Dow stayed flat, highlighting the market’s split exposure to growth versus value. Simultaneously, oil prices retreated about 1% after several tankers finally cleared the Strait of Hormuz, easing some of the risk premium built into crude markets. This confluence of tech weakness and modest oil relief set the tone for a cautious trading day.

Across the Pacific, Australian CPI data is expected to show a 0.3% monthly trimmed‑mean rise, reflecting second‑round effects from March’s energy price shock. Economists note higher milk, fresh produce, and dwelling costs feeding through to headline inflation. While the European Central Bank watches modest improvements in euro‑area manufacturing and services sentiment, it remains vigilant, awaiting broader HICP trends before easing policy. In Singapore, unchanged headline and core inflation at 1.8% and 1.4% respectively keep the Monetary Authority of Singapore on a tightening path, with a policy hike anticipated in July. Consumer confidence in Australia has nudged higher, yet inflation expectations stay near historic lows, underscoring lingering uncertainty.

In the deep‑dive segment, ANZ senior commodities strategist Daniel Hines explains why Persian Gulf oil supply won’t rebound overnight. Tankers stranded for three months need refuelling, cleaning, crew replacement, and new charters before they can move oil. Insurance and toll uncertainties, coupled with lingering Iranian threats, further deter ship owners. Hines projects only a few million barrels per day may return in the next month or two, with a phased recovery extending into 2027 as damaged production capacity is repaired. This gradual supply lift, combined with modest demand shifts, suggests oil markets will remain volatile for the foreseeable future.