(The opinions expressed here are those of the author, a

columnist for Reuters.)

By Mike Dolan

June 10 (Reuters) - What matters in U.S. and global markets

today

By Mike Dolan, Editor-at-Large, Finance and Markets

The unnerving thing about Tuesday's relapse in U.S. tech stocks

is that it happened even as oil prices fell sharply during the

session, showing that stock market nervousness extends well

beyond the energy story.

On that front, crude prices were volatile early on Wednesday

after the U.S. and Iran traded missile strikes overnight - the

most alarming direct exchange between the sides two months into

a very shaky ceasefire.

I'll get into that and more below.

But first, check out my latest column on why the stock market is

rising in importance for a growing number of employees and

households.

And listen to the latest episode of the Morning Bid daily

podcast. Subscribe to hear Reuters journalists discuss the

biggest news in markets and finance seven days a week.

THE CHIPS ARE BLUE

The SOX chip index fell back nearly 2% on Tuesday, although the

midday selloff had been much deeper at over 8%. The equities

mood darkened further on Wednesday, with Asian indexes slumping

and U.S. futures in the red before the bell.

That comes ahead of the U.S. May CPI report, which will take

centre stage on Wednesday. Headline inflation is expected to

creep above 4% for the first time in three years, while core

inflation is seen stalking 3%.

The report will not only set the tone for stocks but also

comes ahead of a 10-year Treasury auction later in the day, with

a Federal Reserve rate hike by year-end now getting baked into

futures markets.

The ECB is expected to deliver a hike as soon as tomorrow, while

Japanese wholesale price inflation data on Wednesday cemented

expectations that the Bank of Japan will follow suit next week.

Chinese producer inflation data also showed price heat there

last month.

One of the few strands of optimism over the past 24 hours was

oil's sharp fall to a seven-week low on Tuesday. That came amid

unverified U.S. claims that oil exports through the Strait of

Hormuz were rising, even as Washington and Tehran struggle to

reach a deal.

But the renewed U.S.-Iran hostilities muddied the picture

somewhat, with crude prices rising before unwinding those gains

in volatile trading early on Wednesday. And despite oil's

broader fall, there's still some unease over a potential supply

crunch this month as U.S. oil inventories dwindle.

All that sets a noisy and bumpy backdrop to the marquee

SpaceX IPO later in the week - an event that some suggest is

contributing to market volatility as investors clear the decks

elsewhere to take up the new offer.

Chart of the day

The U.S. trade deficit narrowed in April as exports of petroleum

products and capital goods jumped to record highs. Petroleum

exports increased to a record high of $37 billion from $28

billion in March, driven by both higher volumes and elevated oil

prices tied to the Middle East conflict.

The U.S. is a net oil exporter and the country's petroleum

trade surplus swelled to a record high of $17.7 billion from

$9.4 billion in March.

Today's events to watch

* U.S. May CPI (8:30 a.m. EDT)

* U.S. 10-year note auction (1 p.m. EDT)

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Opinions expressed are those of the author. They do not reflect

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committed to integrity, independence, and freedom from bias.