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June 11, 2026 - 17:19
5 minutes
(Bloomberg) — Wall Street traders paced a cautious rebound in stocks as beaten-down chipmakers rallied, though lingering worries about an escalation of the Middle East conflict whipsawed the oil market.Equities saw modest gains, with the S&P 500 bouncing from a five-week low. A closely watched gauge of semiconductor companies climbed 3.5%. In a volatile session, West Texas Intermediate crude hovered near $90 as President Donald Trump vowed more attacks on Iran, saying the US would take Kharg Island. As the fallout from the war continued to fan inflation pressures, US producer prices rose in May at the fastest pace in more than three years.The report highlighted the rising toll the energy-price shock from the closure of the Strait of Hormuz is taking on the US economy. With no quick resolution to the conflict in sight, other goods and services are starting to become more expensive as companies pass on higher energy and transportation costs.“This inflationary spike is likely temporary and will subside once the Iran war ends, but there is increasing concern that the Iran conflict will persist for some time,” said Clark Bellin at Bellwether Wealth. “The negatives of rising oil prices and high inflation are outweighed by the incredible earnings power and AI productivity gains that are pushing stocks higher.”Stock investors are discounting the types of events that usually rattle Wall Street as fear of missing out on future gains grips the market on the eve of SpaceX’s trading debut, Evercore ISI’s Julian Emanuel said.“I would say that the true FOMO — the wild-eyed, buy at any cost, whatever it is I’ll take it — is still potentially ahead of us,” Emanuel said Thursday on Bloomberg Television’s Surveillance. “Think about the headlines that we’re dealing with this morning,” he said, pointing to events that could normally undermine sentiment, including the latest Middle East attacks.“We maintain our positive outlook on US equities and believe investors should stay positioned for longer-term gains,” said Ulrike Hoffmann-Burchardi at UBS Chief Investment Office. “We also believe the current environment reinforces the importance of diversification and risk management as markets navigate elevated volatility.”Robust earnings growth across sectors and geographies warrant a diversified equity exposure, while the current elevated level of yields offers an attractive entry point to lock in portfolio income through short- and medium-maturity quality bonds, she said.“The kind of volatility we’re seeing in the market is fairly typical in this environment,” said Tracie McMillion at Wells Fargo Investment Institute. “There is some substance behind that resilience. We saw solid earnings during the first quarter, and earnings revisions for the second quarter have also moved meaningfully higher.”Elsewhere, the European Central Bank raised interest rates for the first time in almost three years, concluding it can no longer wait out the Iran war as inflation pressures intensify.Corporate Highlights:SpaceX’s initial public offering has attracted more than $70 billion in orders from retail investors, according to people familiar with the matter, as the potentially record-breaking debut enters the home stretch. Oracle Corp. fell after reporting quarterly capital expenses that were higher than estimates, raising investor concerns about the profitability of the AI infrastructure business. Intel Corp. rose after Bank of America Corp. raised its recommendation to buy from underperform on expected growth from central processing unit sales. Eaton Corp. agreed to merge its mobility business with Dana Inc. in a deal valuing the combined company at roughly $10 billion including debt. Alibaba Group Holding Ltd. and JD.com Inc. slid after Chinese regulators scolded leading e-commerce players for what it called misleading promotions, Beijing’s latest warning against unchecked competition in the vast online arena. Some of the main moves in markets:StocksThe S&P 500 rose 0.3% as of 11:18 a.m. New York time The Nasdaq 100 rose 0.9% The Dow Jones Industrial Average rose 0.5% The Stoxx Europe 600 rose 0.7% The MSCI World Index rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.1% to $1.1520 The British pound fell 0.2% to $1.3338 The Japanese yen was little changed at 160.50 per dollar CryptocurrenciesBitcoin rose 1.4% to $62,613.25 Ether rose 0.8% to $1,642.62 BondsThe yield on 10-year Treasuries declined three basis points to 4.52% Germany’s 10-year yield declined five basis points to 3.03% Britain’s 10-year yield declined three basis points to 4.90% CommoditiesWest Texas Intermediate crude rose 0.5% to $90.52 a barrel Spot gold rose 0.2% to $4,081.63 an ounce ©2026 Bloomberg L.P.
