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TRADING DAY-Sizzling AI now fizzling
Jun 10, 2026 2:29 PM

ORLANDO, Florida, June 10 (Reuters) - Another heavy selloff

in tech dragged U.S. and global stocks lower on Wednesday, and

wider investor sentiment was rocked and oil prices rose sharply

after U.S. President Donald Trump threatened to hit Iran "very

hard".

In my column today, I look at how global trade seems to be

thriving, despite tariffs, trade wars, real wars and an energy

shock. There's a catch though - the headline numbers are being

inflated by rising prices more than volumes. How sustainable is

this?

If you have more time to read, here are a few articles I

recommend to help you make sense of what happened in markets

today.

1. U.S. consumer inflation breaks above 4% as Iran war

raises energy prices

2. Why the blockbuster SpaceX IPO may spell more bad news

for crypto

3. World markets walk a tightrope between AI stocks and oil

shocks

4. Stock-pay boom amplifies U.S. economic drumbeat: Mike

Dolan

5. Bank of Japan Governor Ueda hospitalized, will miss June

meeting

Today's Key Market Moves

* STOCKS: South Korea -5%, China and Japan -2%. Big three

U.S. indices down close to 2%.

* SECTORS/SHARES: Eight S&P 500 sectors fall, three rise.

Tech -2.3%, industrials -3.4%; consumer staples +1.7%. Super

Micro Computer -28%, Nvidia -3.8%. "SOX" chip index -3.6%.

* FX: USD/JPY up to 160.50, highest since April 30 when

Japan last intervened.

* BONDS: U.S. yields up slightly. 10-year auction draws very

strong demand, especially from indirect bidders, a proxy for

foreign central banks.

* COMMODITIES/METALS: Oil rebounds 2%, gold -4%.

Today's Talking Points

* Tech it down a notch

The AI frenzy is losing its luster, ironically just as the

world's biggest IPO is about to land. Or perhaps they're not

totally unconnected. Either way, AI and tech stocks are under

pressure and are dragging the broader indices down with them.

The "SOX" chip index has lost 13% in the last week, and the

Nasdaq has fallen five days out of the last six, its worst run

this year. The Nasdaq is also at its lowest daily close in over

a month, as is the S&P 500 tech index. SpaceX, come on down!

* Core relief?

Annual U.S. CPI inflation is now above 4%, more than double

the Fed's 2% target. It is expected to keep rising in the coming

months, tightening the squeeze on consumers and households - and

voters - as the November midterm elections come into view.

Was there anything positive in the numbers? Monthly core

inflation slowed to 0.2% from 0.4%, below consensus 0.3%. Core

goods inflation turned negative for the first time this year,

suggesting the tariff impulse is fading, and the oil spillover

into core remains limited. Grounds for optimism, or

straw-clutching wishful thinking?

* BOJ Governor

Bank of Japan Governor Kazuo Ueda was hospitalized on

Wednesday, and will miss the bank's policy meeting next week. It

is the first time a BOJ governor will miss a scheduled policy

meeting since the central bank began deciding policy ​under the

current arrangement in 1998.

The BOJ is expected to raise rates 25 bps to a

three-decade-high of 1.00%. From an FX perspective, a strong

commitment to more tightening might be needed to prevent the

weak yen from hitting multi-decade lows. But Ueda's absence

makes that communication difficult.

What could move markets tomorrow?

* Developments in the Middle East

* Turkey interest rate decision

* European Central Bank interest rate decision

* U.S. weekly jobless claims

* U.S. PPI inflation (May)

* U.S. Treasury sells $22 billion of 30-year bonds at

auction

Want to receive Trading Day in your inbox every weekday

morning? Sign up for my newsletter here.

Opinions expressed are those of the author. They do not

reflect the views of Reuters News, which, under the Trust

Principles, is committed to integrity, independence, and freedom

from bias.

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