ASX slides as war uncertainty lingers; Temple & Webster appoints new CEO

The Australian sharemarket has continued Wednesday’s slump at the open as uncertainty over the Iran war hangs over investors, even though Wall Street hit fresh records overnight after another round of impressive company results.

The S&P/ASX 200 was down 46 points, or 0.5 per cent, to 8797.6 at 10.20am AEST, with eight of 11 industry sectors in the red. Iranian news agencies reported this morning that the paramilitary Revolutionary Guard has attacked three ships in the Strait of Hormuz, throwing into question efforts to end the war.

Energy stocks advanced as oil prices rose for a fourth day, with the US and Iran locked in a battle for control of the Strait of Hormuz. Santos added 1.2 per cent after releasing its first-quarter update, with the company reporting a 3 per cent increase in production to 22.5 million barrels of oil equivalent, while sales rose 3 per cent to $1.27 billion.

Meanwhile, Bloomberg reported the company is restructuring its oil and gas business to cut costs, according to an internal notice, after a string of stymied takeover bids in recent years have raised pressure to increase shareholder returns. Woodside Energy, which is holding its AGM today, was up 1.1 per cent while refiner Ampol rose 2.2 per cent and Yancoal advanced 1.2 per cent.

Financial stocks were lower again, with Commonwealth Bank down 0.9 per cent, Westpac dropping 0.8 per cent, National Australia Bank shedding 0.6 per cent and ANZ Bank losing 1 per cent in early trade.

Mining stocks were mixed, with Rio Tinto up 0.5 per cent in early trade while BHP slipped 0.2 per cent and Fortescue fell 1 per cent. Gold stocks continued to decline, with Northern Star shedding 2.4 per cent and Northern Star dropping 1.3 per cent.

Online retailer Temple & Webster slumped 12.4 per cent after saying its co-founder Mark Coulter will step down as CEO at the end of the financial year and become its executive chair. Former executive Susie Sugden will return to the company to start as CEO on July 1 after a stint at private equity firm Genesis Capital.

Hearing aid maker Cochlear slipped 0.3 per cent, a day after tumbling more than 40 per cent after it shaved its profit forecast for the year by up to a third, citing uncertainty in the Middle East, the rising Aussie dollar and disappointing demand in its main markets

Tech stocks lost ground, with WiseTech slumping 3.6 per cent and Xero down 2.2 per cent.

On Wall Street overnight, electric-car maker giant Tesla sharply raised its spending plan to more than $US25 billion ($34.9 billion) for the year as CEO Elon Musk pours money into artificial intelligence, robotics and chips – moves he said were “well justified” to build big future revenue streams. Tesla’s net income rose in the first quarter to $US477 million as its car sales rebounded from a slump in 2025, while revenue rose to $US22.4 billion.

The company noted that it has begun making its so-called Cybercabs without pedals or wheels. And Musk added a teaser in the call, saying that Tesla could debut a new manually driven Roadster sports car in a month or so.

Tesla reported its results after the close of Wednesday’s trading session, which saw the S&P 500 jump 1 per cent and top its prior all-time high set on Friday. The Dow Jones added 0.7 per cent, and the Nasdaq composite set its own record after jumping 1.6 per cent.

GE Vernova jumped 13.7 per cent after the company, whose products help generate about a quarter of the world’s electricity, reported profit for the first three months of the year that blew past analysts’ expectations.

The vast majority of companies in the S&P 500 have so far been delivering results for the start of 2026 that have topped analysts’ expectations, even with the war in Iran driving up oil prices and uncertainty for the global economy. Such strong performances have helped the S&P 500 power higher, and the index recorded its 13th gain in its last 16 days.

Boston Scientific rallied 9 per cent, Boeing climbed 5.5 per cent, and Philip Morris International rose 7 per cent after all delivered results for the latest quarter that were stronger than analysts expected.

Still, another rise in oil prices helped keep enthusiasm in check on Wall Street. The price for a barrel of Brent crude oil, the international standard, climbed 3.5 per cent to $US101.91 overnight on uncertainty about when the war with Iran could let up and allow petroleum to flow freely to customers from the Persian Gulf again. It comes a day after US President Donald Trump extended a ceasefire but also said he was maintaining an American blockade of Iranian ports.

The standoff over Iran’s closure of the strait and the US blockade raised doubts about when or if talks would resume to end the crisis.

On the losing end was Best Buy, which fell 4.6 per cent after the electronics retailer announced the departure of CEO Corie Barry. She will be replaced by longtime insider Jason Bonfig, the company’s chief customer, product and fulfillment officer.

Stocks of cannabis companies rose amid reports that the Trump administration is preparing to reclassify marijuana as a less dangerous drug. Trump signed an executive order in December meant to speed up the Drug Enforcement Administration’s process for reclassifying the drug, a move that would not make it legal for recreational use by adults nationwide, but could change how the drug is regulated and reduce a hefty tax burden on the cannabis industry.

Tilray Brands jumped 14.2 per cent, and Canopy Growth soared 20.2 per cent.

In other international markets, indexes fell in Europe.

In the bond market, Treasury yields held relatively steady despite the gain in oil prices. The yield on the 10-year Treasury remained at 4.30 per cent. A day before, it had climbed after Trump’s nominee to chair the Federal Reserve, Kevin Warsh, said he never promised Trump he would cut interest rates even though Trump has been angrily calling for lower rates.