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June 11, 2026 - 06:08
6 minutes
(Bloomberg) — Global equities fell to a more than one-month low as a technology-led selloff deepened and the war in Iran showed little signs of ending. Oil rose.MSCI’s All Country World Index, the broadest measure of global shares, slid as much as 0.3% to levels last seen on May 5. The Asia Pacific gauge dropped 0.8% to a three-week low after US forces launched strikes on multiple targets in Iran, effectively collapsing the April ceasefire. Also weighing on the mood was Brent crude rising 1.8% to about $95 a barrel.European shares were also set to decline about 1% at the open. Still, sentiment toward the US started to stabilize with futures for the Nasdaq 100 Index erasing earlier losses to rise 0.6%.Volatility is increasing across global equity markets as investors contend with stretched tech valuations, market concentration in a handful of megacap companies, and a wave of large IPOs, straining the rally that drove stocks to repeated records this year. Add to that, bond traders are also pricing in higher borrowing costs around the world, with the European Central Bank forecast to deliver its first rate hike since September 2023 on Thursday.“Investors remain skittish,” said Chris Beauchamp, chief market analyst at IG in London. “It is now a case of ‘once bitten, twice shy.’ No one wants to go charging in to buy the dip yet, which suggests more of a drift lower for the time being, though leaving the overall trend intact.”Earlier, the Cboe Volatility Index or VIX, which measures expected volatility in the S&P 500 Index, jumped to the highest level since April. A gauge of the so-called “Magnificent Seven” megacaps dropped for a fourth day, touching the lowest level since mid April.In the US, shares of chipmakers including Nvidia Corp. and other AI infrastructure companies, this year’s biggest winners, fell for a second day Wednesday. Oracle Corp. shares slipped in extended trading after reporting quarterly capital expenses that were higher than estimates.Elsewhere, Treasuries steadied after falling Wednesday when energy prices rose. The dollar weakened against most of its Group-of-10 peers. The yen was little changed at 160.49 per dollar with Bank of Japan Governor Kazuo Ueda hospitalized. He is expected to miss next week’s policy meeting.In geopolitical news, the US Central Command said it had begun what it called the “additional self-defense strikes,” which followed action on Tuesday in retaliation for the downing of a US helicopter. The moves underscored President Donald Trump’s growing impatience that the US and Iran have so far failed to reach an agreement.Trump said in a Fox News interview that he had spoken with top Iranian officials Wednesday and they had asked him to halt the bombing. He said it would stop shortly, but added the US would hit Iran again if its leaders didn’t sign an agreement, Fox News reported.What Bloomberg’s Strategists Say…“With SpaceX’s $75 billion IPO set to be priced today, investors have been raising cash, reducing leverage and reallocating capital to prepare. The resulting concentration of capital is generating short-term liquidity pressures that are weighing down broader risk assets that are also facing headwinds from bets on a higher Fed cash rate this year.”— Andre de Silva, Markets Live strategist. Click here for the full analysis.Even so, attention remains firmly on tech and IPOs of companies such as SpaceX.A flood of new shares from companies looking to fund their AI ambitions is raising questions on Wall Street about whether there will be enough buyers to soak them all up and what this pile of fresh equity will mean for stock prices more broadly.SpaceX’s IPO attracted demand for more than four times the available shares, according to people familiar with the matter, ahead of the Elon Musk-led rocket, satellite and artificial intelligence firm stopping taking orders.“Investors can’t help but have one eye on the SpaceX IPO, and there’s nervousness about how markets will react to it,” said Josh Gilbert, lead analyst for Asia Pacific and the Middle East at Etoro Ltd. “How markets absorb the biggest listing in history at a rich valuation will tell us a lot about whether the appetite for the AI trade is still sky high.”Corporate Highlights:Super Micro Computer Inc. sank after the company announced a plan to raise $7 billion through a package of equity offerings, a move meant to help pay for the production of more AI servers. OpenAI is considering drastically lowering the prices it charges users as it seeks to win customers from its archrival Anthropic. Some of the main moves in markets:StocksS&P 500 futures rose 0.4% as of 1:07 p.m. Tokyo time Nikkei 225 futures (OSE) fell 0.4% Japan’s Topix fell 0.6% Australia’s S&P/ASX 200 fell 0.2% Hong Kong’s Hang Seng fell 1.1% The Shanghai Composite fell 0.7% Euro Stoxx 50 futures fell 0.6% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1544 The Japanese yen was little changed at 160.53 per dollar The offshore yuan was little changed at 6.7766 per dollar CryptocurrenciesBitcoin rose 1.3% to $62,516.98 Ether rose 1.3% to $1,650.41 BondsThe yield on 10-year Treasuries was little changed at 4.55% Japan’s 10-year yield was unchanged at 2.675% Australia’s 10-year yield advanced one basis point to 4.90% CommoditiesWest Texas Intermediate crude rose 2.1% to $91.94 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.–With assistance from Matthew Burgess, Winnie Hsu and Aya Wagatsuma.©2026 Bloomberg L.P.
