The markets are in turmoil, with the ASX 200 poised for a decline and the S&P 500 and Nasdaq tumbling as the US launches new strikes on Iran. The US CPI is in line with expectations, but at a three-year high of 4.2%, it's hardening bets on a Fed rate hike. Commodities are being smashed, with gold, platinum, and silver prices all down. The VIX has jumped to a two-month high, indicating a deterioration in risk sentiment. Bond traders are positioning for multiple Fed rate hikes in the coming months, and investors are seeking refuge in transportation stocks and profitable firms. The US-Iran tensions are intensifying, with the US launching 'self-defence strikes' and Trump threatening more attacks. Iran has launched ballistic missiles and drones at US bases in Bahrain, Kuwait, and Jordan. The Hormuz shipping volumes remain very thin, and the S&P 500 is trading lower, finishing near its worst levels. The market is bearish, with the S&P 500 closing right on its 50-day moving average. The VIX has spiked, and bond yields are pushing up. SpaceX and other IPOs are printing excess supply in markets, and AI-exposed markets like the KOSPI are pulling back sharply. A US-Iran peace deal remains a puzzle, and the markets are in a sea of red, with miners and resource stocks taking a hit. The ASX Today section highlights some corporate actions, including dividends and earnings, but the overall sentiment is bearish, with the markets in a state of uncertainty and volatility.
