Market Overview
The market is caught between relief over easing supply chains and growing anxiety about whether tech companies' AI spending will ever pay off.
Oil prices plummeted 4% Wednesday after ships started moving freely through the Strait of Hormuz, a critical chokepoint where roughly one-third of the world's seaborne oil passes through (think of it as the only highway out of a major gas station). West Texas Intermediate crude hit $69.63 a barrel—the lowest since early March—as 11,000 stranded sailors finally got cleared to leave and supply fears eased. President Trump criticized oil companies for not dropping pump prices fast enough, but experts say there's a lag between crude costs and what you pay at the station due to refining time and taxes.
The Nasdaq fell 0.4% Wednesday despite a brief rebound attempt, as investors sold off high-flying artificial intelligence stocks that have soared this year on hype and hope. Micron Technology—a chip maker central to AI's infrastructure—tanked 13% Tuesday and faces scrutiny after rising 250% year-to-date, a sign Wall Street is questioning whether these valuations can hold. The tech selloff reflects real concerns: companies spending enormous sums on AI while interest rates may rise again, squeezing profit margins.
With the Strait of Hormuz now open and ships moving again, global supply chains that have been congested for months should start normalizing over the coming weeks. Longer transit times and stranded cargo had stalled deliveries worldwide, but DHL and other logistics firms are already seeing relief as vessels bypass dangerous waters. The reopening won't fix everything overnight—it typically takes weeks for supply disruptions to fully unwind—but it removes a major chokepoint that was pushing up shipping costs and delivery delays.