Mucahithan Avcioglu
10 June 2026•Update: 10 June 2026
US stocks fell sharply Wednesday as inflation continued to climb, and President Donald Trump signaled a harder stance toward Iran.
The blue-chip Dow dropped 1.87%, or 953.33 points to 49,918.78.
The S&P 500 lost 1.62%, or 119.66 points to end at 7,266.99, and the tech-heavy Nasdaq Composite declined 1.98%, or 509.32 points to 25,169.50.
The Volatility Index (VIX), often referred to as the market’s “fear index,” climbed 11.83% to 22.22.
Risk sentiment weakened after Trump said negotiations with Iran were taking “too long” and warned about additional action. Trump said Iran had “taken too long to negotiate a deal that would have been great for them,” adding that Tehran would “have to pay the price.”
Markets were under additional pressure after Trump pledged more attacks against Iran, saying the US was “going to be attacking them very hard.”
Oil prices climbed following the remarks, adding to inflation concerns. Brent crude futures rose around 2.8% to above $94 per barrel, and the West Texas Intermediate (WTI) rose 3.3% to $91.12.
Tensions in the Middle East escalated again Tuesday after US forces launched strikes against Iran in response to the downing of a US Army Apache helicopter, according to US Central Command. Trump accused Iran of shooting down the helicopter, which he said was patrolling above the Strait of Hormuz.
The renewed escalation raised concerns that the war could further disrupt energy flows through the critical oil-shipping route, feeding volatility across equities, commodities and rates.
Chip stocks also came under renewed pressure. Shares of Micron Technology, Advanced Micro Devices and Broadcom declined, while the iShares Semiconductor ETF lost around 3%. The fund had already been hit by a sharp selloff last week before a brief rebound Monday.
Some traders linked the latest weakness in high-flying chip names to portfolio repositioning ahead of SpaceX’s reported IPO, while others pointed to profit-taking after a steep rally. The semiconductor ETF remains sharply higher for the year despite recent losses.
Investors also assessed the latest US inflation data. Headline annual inflation, which includes food and energy prices, climbed to 4.2% for the first time in more than three years, reinforcing concerns that higher energy costs linked to the Iran war could complicate the Fed’s policy outlook.
European markets
European stocks also saw losses, with the pan-European Stoxx Europe 600 index falling 0.08% to close at 618.17 points -- its fourth consecutive daily decline as geopolitical risks and inflation concerns continued to shape trading.
Germany's DAX 40 fell 0.97% to 24,195.31 points, and France's CAC 40 lost 0.51% to 8,161.83.
Italy's FTSE MIB 30 declined 0.46% to 50,029.17, and Spain's IBEX 35 dropped 0.18% to end at 18,142.70.
On the other hand, the UK's FTSE 100 bucked the trend, rising 0.27% to 10,254.81 points, supported by gains in energy and consumer staples stocks as oil prices remained elevated with Middle East tensions.
