One analyst said “the inflation fire is burning, but it has not yet jumped every fence in the neighbourhood.”
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, US, Jun 1, 2026. (Photo: REUTERS/Brendan McDermid)
11 Jun 2026 05:49AM
NEW YORK: Global stock markets mostly fell on Wednesday (Jun 10) as fresh strikes in the Middle East, a jump in US inflation and a tech sell-off weighed on sentiment.After mostly shrugging off the inflation report, the selloff accelerated on Wall Street, with all three major indices finishing sharply lower and the Dow off nearly two per cent.The declines reflected "profit-taking in technology after a very strong two-month rally," said Angelo Kourkafas from Edward Jones. "I don't think anything fundamental has changed in terms of the artificial intelligence outlook and spending but it's more so (...) a natural pullback."Data showed US consumer inflation surged to a three-year high in May, hitting 4.2 per cent year-on-year.The increase, up from April's 3.8 per cent figure, follows strong US jobs figures last week that ramped up expectations for a rate hike.Analyst Stephen Innes noted that the data was not as worrying as it first appears. While the headline figure jumped, the core reading that excludes energy prices that have surged due to war in the Middle East, held steady at 2.9 per cent."The inflation fire is burning, but it has not yet jumped every fence in the neighbourhood," he said.Besides the inflation data, markets digested the latest military back-and-forth between the United States and Iran.US President Donald Trump vowed to "hit them again hard today" after Iran downed a US helicopter, further dimming the prospects for a peace deal that could reopen the Strait of Hormuz to oil tanker traffic.Investors have also started worrying recently more about the risk of a hike in US interest rates.New Federal Reserve Chair Kevin Warsh will preside over his first rate-setting meeting of the central bank's policymakers next week.
