Stocks Fall as Trump Says US to Attack Iran Hard: Markets Wrap

This content was published on

June 10, 2026 - 18:03

4 minutes

(Bloomberg) — A flare-up in geopolitical tensions spurred a rally in oil and drove stocks lower, with the market also rattled by a renewed selloff in some the world’s largest technology companies.The decline in equities wiped out this week’s advance, driving the S&P 500 down about 1%. A closely watched gauge of chipmakers slipped 2%. Oil topped $90 as President Donald Trump vowed to strike Iran again and scolded the country for delaying talks on an interim peace deal, following overnight strikes that put further strain on a fragile two-month truce.“We’re going to be attacking them, attacking them very hard,” Trump told reporters at the White House Wednesday. “We hit them hard yesterday, and we’re going to hit them hard again today.”Increased tensions in the Middle East risk derailing intermittent indirect talks between Iran and the US. That means the path to a deal allowing for the re-opening of the Strait of Hormuz is clouded, stoking concern over inflationary pressures that could make the Federal Reserve raise rates before the year is over.“Investors had been banking on a quick peace deal in the Middle East,” said Bret Kenwell at eToro. “The trouble is, the longer it takes to find a resolution, the more likely oil prices remain elevated. And the longer energy prices stay elevated, the stickier inflation can get.”Meantime, warnings of a bubble have been loudest in parts of the market riding the artificial-intelligence wave, where many of the Magnificent Seven megacaps and semiconductor firms have delivered strong returns.Investors are also preparing for a wave of new equity supply unlike anything seen in recent history. A flood of shares from companies seeking capital to fund AI ambitions is raising questions across Wall Street about whether demand will be sufficient to absorb the issuance and what the implications will be for broader equity valuations.Corporate Highlights:The rally in artificial intelligence-related stocks is suddenly on shaky footing, and Oracle Corp.’s earnings report after the close represents the group’s next test. Soon after selling the biggest Canadian corporate bond sale on record, Amazon.com Inc. inked another multi-billion dollar financing as spending on artificial intelligence soars. Super Micro Computer Inc. plans to raise $7 billion through a package of equity offerings to purchase the components needed to fulfill customers’ orders for the company’s artificial intelligence servers. Cracker Barrel Old Country Store Inc. surged after raising its full-year revenue guidance and said declines in store traffic are moderating. Shares of several large trucking companies plunged after Amazon.com Inc. announced an expansion of its shipping service that has already shaken the transportation and logistics sector and unsettled investors. Chewy Inc. cut its full-year revenue outlook as Americans rein in spending on their pets — one of the few household expenses that have remained fairly shielded as inflation worries bite. What Bloomberg Strategists say…“Stocks might treat this as a Goldilocks CPI report, but the underlying signal isn’t a reassuring one for companies still contending with higher producer prices.”—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.Some of the main moves in markets:StocksThe S&P 500 fell 0.8% as of 12:01 p.m. New York time The Nasdaq 100 fell 1% The Dow Jones Industrial Average fell 1.1% The Stoxx Europe 600 was little changed The MSCI World Index fell 0.7% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1550 The British pound was little changed at $1.3390 The Japanese yen was little changed at 160.47 per dollar CryptocurrenciesBitcoin rose 0.6% to $62,513.78 Ether fell 0.3% to $1,654.65 BondsThe yield on 10-year Treasuries advanced one basis point to 4.53% Germany’s 10-year yield advanced three basis points to 3.08% Britain’s 10-year yield advanced three basis points to 4.93% CommoditiesWest Texas Intermediate crude rose 2.9% to $90.75 a barrel Spot gold fell 3.2% to $4,126.37 an ounce ©2026 Bloomberg L.P.