Published Wed, Jun 10, 2026 · 10:20 PM
WALL Street’s major indexes edged lower on Wednesday (Jun 10), as technology stocks extended losses and renewed tensions between the United States and Iran overshadowed a tame inflation reading.
Volatility has picked up across stock markets in recent days, as investors contend with a widening array of risks, including high valuations in the tech sector, escalating Middle East tensions and expectations that the Federal Reserve may need to hike interest rates to curb inflation.
The CBOE Volatility Index rose 0.78 points to 20.65, after hitting its highest level since April 7 in the previous session.
US consumer prices increased 4.2 per cent in the 12 months through May, the largest gain since April 2023, data showed, as the Middle East conflict raised the price of petrol and other energy products.
The pace of increase was, however, in line with forecasts, as per a Reuters poll of economists.
“While it is very much in-line with expectations, it’s still moving in the wrong direction,” said Art Hogan, chief market strategist at B. Riley Wealth.
“That hasn’t changed the narrative around what the Fed will do at its next meeting, but the overarching consensus is that the Fed will hold steady.”
The Federal Reserve is widely expected to hold interest rates at its June policy meeting. Investors are pricing in at least one 25 basis point rate hike by the end of the year.
Technology and AI stocks have borne the brunt of the selloff as investors priced in a tighter monetary policy and worried about stretched valuations in the sector.
Nvidia, Broadcom and Micron Technology fell between 1 per cent and 3.8 per cent, with losses rising again after a brief rebound on Monday. The S&P 500 tech index was down 1.1 per cent.
Super Micro Computer tumbled 14.2 per cent after announcing plans to raise US$7 billion through a series of equity and equity-linked financing transactions to fund component purchases for its growing AI server demand.
The rotation out of highly subscribed technology shares has aided other areas of the markets that have lagged this year, including healthcare, real estate and consumer staples.
Six of 11 major S&P 500 sectors moved higher, with energy shares leading gains, as oil prices rose more than 1 per cent.
At 9.37 am ET, the Dow Jones Industrial Average fell 285.36 points, or 0.56 per cent, to 50,586.75, the S&P 500 lost 33.44 points, or 0.45 per cent, to 7,353.21 and the Nasdaq Composite lost 147.78 points, or 0.57 per cent, to 25,531.04.
US President Donald Trump said Iran had taken too long to negotiate a deal and would now “have to pay the price,” while Teheran said it would reassess diplomatic engagement with Washington after overnight tit-for-tat strikes.
The much-hyped US$1.75 trillion listing of SpaceX on Friday, targeting a record US$75 billion raise, could also pressure US stocks as concerns mount over excessive optimism in the tech sector.
Among other movers, shares of trucking companies XPO, J.B. Hunt and Old Dominion fell between 2.5 per cent and 6.2 per cent after Amazon announced expansion of its less-than-truckload freight services in the US. The industrials index slid 1 per cent.
Declining issues outnumbered advancers by a 1.17-to-1 ratio on the NYSE and by a 1.05-to-1 ratio on the Nasdaq.
The S&P 500 posted 13 new 52-week highs and four new lows, while the Nasdaq Composite recorded 35 new highs and 71 new lows. REUTERS
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