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Update: US Equity Indexes Mixed Amid Gains in Consumer Discretionary, Industrials; Crude Oil Slumps

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(Updates with index/price moves, macroeconomic data, and political/company news from the first paragraph.)

US equity indexes were mixed, with consumer discretionary and industrials topping sector charts amid a sharp decline in crude oil prices and government bond yields.

The Nasdaq Composite slipped 0.3% to 25,516.3, with the S&P 500 down 0.1% to 7,360.9, while the Dow Jones Industrial Average was higher by 0.4% to 51,867.3 on Wednesday afternoon.

Health and materials were among the top gainers, while energy was the standout decliner.

Front-month global benchmark North Sea Brent sank 3.4% to $74.22 per barrel, and the US West Texas Intermediate slid 3.6% to $70.61 per barrel.

Ships have begun sailing through the Strait of Hormuz under a new scheme by the International Maritime Organization to evacuate the trapped vessels, a spokesperson told Reuters on Wednesday. The initiative will enable hundreds of ships, with some 11,000 seafarers stranded in the Gulf, to sail through Hormuz.

US commercial crude oil stocks, excluding inventories in the Strategic Petroleum Reserve, declined by 6.1 million barrels during the week ended June 19, following an 8.3-million-barrel slump in the previous week, a steeper dive than the 3.6 million-barrel slide expected in a survey compiled by Bloomberg.

The Senate for the first time approved a war powers resolution Tuesday seeking to block US military action against Iran, as lawmakers warily watch President Donald Trump's efforts to resolve a conflict that the administration launched on its own and now needs Congress to fund, the Associated Press reported.

Most US Treasury yields declined, with the 10-year down 8.3 basis points to 4.41%. The two-year rate dropped 4.6 basis points to 4.15%.

In company news, Micron Technology (MU) is set to report its fiscal Q3 earnings after the market closes. Analysts polled by FactSet expect earnings of $20.83 per share on revenue of $35.85 billion.

In economic news, US new-home sales decelerated to a 580,000 annual rate in May from an upwardly revised 626,000 rate in April, below the 640,000 rate expected in a Bloomberg-compiled survey. Home sales were down 6.8% from May 2025.

Mortgage applications in the US increased as refinancing activity improved while home purchase demand edged lower, the Mortgage Bankers Association said. The market composite index, which measures loan application volume, increased 1% in the week ended June 19. On an unadjusted basis, the index decreased 10% compared with the previous week. This week's results include an adjustment for the Juneteenth holiday.

"Despite the elevated mortgage rates and overall economic uncertainty, mortgage application volume is running 8% above year-ago levels," said Mike Fratantoni, MBA's chief economist.

In precious metals, gold futures dropped 3.1% to $4,020.51, and silver futures slumped 5% to $59.97.

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Foreign Tourist Arrivals in South Korea in 2026 Exceed 10 Million

The number of foreign tourists that arrived in South Korea has exceeded 10 million as of the third week of June, the Ministry of Culture, Sports and Tourism said in a Wednesday release.Ministry of Culture, Sports and Tourism Choi Hwi-young said that this milestone was achieved about a month earlier than last year, when the 10 million mark was surpassed in mid-July.The number of foreign tourists visiting South Korea jumped 19.4% to 1.95 million in May from 1.63 million a year earlier. Total foreign arrivals in the country in the first five months of 2026 rose 21% to 8.72 million from 7.21 million in the same period last year, the tourist ministry said.

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BOJ Board Warns Crude Oil Price Hikes Could Spread to Consumer Items, June Minutes Show
International

BOJ Board Warns Crude Oil Price Hikes Could Spread to Consumer Items, June Minutes Show

Bank of Japan board members said the impact of rising crude oil prices was already spreading to midstream business-to-business prices and warned that this could affect prices of a wider range of consumer items."In this situation, more concern is warranted about the risk that this could lead to a rise in prices, given that firms' price-setting behavior is becoming more active," according to a summary of opinions from the June 15-16 Monetary Policy Meeting released Wednesday.At the meeting, the board voted 7-1 to raise the policy interest rate by 25 basis points to 1.00%, the highest level since 1995.The board cited the risk that underlying CPI inflation could deviate upward to a level about the 2% price stability target. The decision marked the BOJ's first rate hike since December, when the board lifted the rate to 0.75% from 0.5%.Members also pointed to the rise in inflation expectations, as indicated by the break-even inflation rate and the widening spread between short- and long-term interest rates."Import prices have also been driven up by exchange rate developments. Such price increases are considered to place a burden on the business of a considerable number of firms, including small and micro firms," according to the minutes.The board said it had become "more appropriate than before" to adjust the degree of monetary accommodation.Members added that even if crude oil prices dropped in the future, it was "highly possible" that upward price deviation would spill to items other than petroleum-related goods.The board said this reflects demand shocks stemming from overseas developments, particularly the global expansion of AI-related demand.Japan's annual headline inflation rose to 1.5% in May from 1.4% in April, while core inflation, which strips out volatile items, held steady at 1.4%."Government measures have the effect of influencing households' perceived inflation by adjusting the price levels of specific goods and services," according to the June minutes.However, the board noted that such factors need to be excluded when assessing underlying inflation levels.Beyond rates, the board agreed to halt the reduction of its Japanese government bond purchase amounts from April 2027.The board acknowledged that it will likely take some time for Japanese investors to beef up their government bond holdings.Additionally, the board said Japan's economy has been developing in line with the baseline scenario according to the April 2026 Outlook for Economic Activity and Prices.The BOJ expects Japan's real GDP to grow by about 0.5% in fiscal 2026, according to the April outlook."[T]he projected real GDP growth rate for fiscal 2026 is lower, and the projected year-on-year rate of increase in the CPI (all items less fresh food) for fiscal 2026 is significantly higher, both reflecting the rise in crude oil prices," the BOJ said at the time.Meanwhile, ING Think Senior Economist Min Joo Kang said they expect a majority of BOJ board members to support another rate hike if geopolitical risks to growth subside further."[T]he timing of the next rate hike will likely depend on how quickly energy supply disruptions are resolved. The focus seems to be on the possible impact on growth rather than on inflation," the economist said.

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Australia's Inflation Increases 4% in Year to May

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