Australia's S&P/ASX 200 was little changed Wednesday, dipping 2.2 points, or 0.03%, to 8,784.8, after sliding for four consecutive sessions as a sharp overnight selloff in commodity prices and a continued rout in U.S. technology stocks kept investors on the defensive heading into key local inflation data.

A Fourth Straight Day of Declines

Australia's ASX 200 fell 29 points, or 0.3%, to close at 8,787 on Tuesday, sliding for a fourth straight session and reversing early gains as U.S. equity futures turned muted following a sharp selloff in tech and chipmakers that dragged Wall Street lower overnight.

Commodity Prices Tumble Overnight

The session's weakness traced in large part to a broad-based decline in commodity prices that accelerated significantly after the local market had already closed. Commodity prices were mostly down around 1-2% when the ASX closed on Tuesday, but selling accelerated overnight, with sharp declines for copper, down 3.7%, aluminum, down 3.0%, and gold, down 1.9%, among others.

A Bank of America Warning on U.S. Rates

Adding to the cautious tone, a fresh call from a major Wall Street bank on the path of U.S. interest rates rattled sentiment heading into Wednesday's session. A Bank of America note called for three Fed hikes in 2026, with markets now pricing out cuts entirely — a dramatically more hawkish outlook than investors had been pricing in just weeks earlier.

Investors Bracing for Key Inflation Data

Much of the market's caution centers on local economic data due in the coming days that could shape the Reserve Bank of Australia's next policy decision. Traders awaited May CPI data later in the day, with forecasts pointing to faster annual inflation after April's 4.2% but a rare monthly decline, the first in nine months. Labor market figures due Thursday also kept sentiment cautious, with........

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