US Stocks Close: Dow Jones Falls Over 900 Points, Tech Stocks Slump Across the Board, OpenAI Plans to List Within a Year

Tradingkey — On June 10, the U.S. May CPI hit a three-year high, and Donald Trump issued fresh threats of military action against Iran. Both developments weighed on market sentiment, leading all three major U.S. indices to decline, with tech stocks suffering broad losses.

By the close, the Dow Jones Industrial Average fell 1.87% to 49,918.78 points; the S&P 500 Index dropped 1.62% to 7,266.99 points; and the Nasdaq Composite Index shed 1.98% to 25,169.5 points.

Tech stock performance

Super Micro Computer (SMCI) fell 27.98% to $29.27.

Super Micro Computer plans to raise up to $7 billion through equity offerings to fund the procurement of components and equipment needed to fulfill customer orders. According to the company's announcement, the transaction will include a $5 billion underwritten public offering and a $2 billion "at-the-market" (ATM) program. Of the underwritten offering, $1.25 billion will be in common stock, while the remaining $3.75 billion will be issued via depositary shares of mandatory convertible preferred stock. The underwriters are led by J.P. Morgan, Goldman Sachs, and Citigroup.

Other tech giants were broadly lower: Apple (AAPL) rose 0.35%; Broadcom (AVGO) fell 5.12%, TSMC (TSM) dropped 4.44%, Tesla (TSLA) declined 3.80%, Nvidia (NVDA) fell 3.73%, Amazon (AMZN) shed 2.53%, Meta Platforms (META) decreased 2.33%, Alphabet (GOOGL) lost 2.16%, and Microsoft (MSFT) fell 1.50%.

The Philadelphia Semiconductor Index fell 3.57% to 12,206.46. Among its 30 constituents, 29 declined. Qualcomm (QCOM) dropped 6.92%, Arm Holdings (ARM) fell 5.37%, Marvell Technology (MRVL) declined 5.35%, Broadcom (AVGO) fell 5.12%, Advanced Micro Devices (AMD) shed 4.86%, and Micron Technology (MU) lost 4.70%.

Optical communication stocks led the declines, with Marvell Technology (MRVL) falling 5.35%, Broadcom dropping 5.12%, Nokia (NOK) declining 3.39%, Corning (GLW) sliding 3.29%, Astera Labs (ALAB) down 3.17%, and Amphenol (APH) shedding 3.14%.

Popular China concept stocks bucked the trend to find support, as CHAGEE (CHA) rose 7.52%, NetEase (NTES) gained 3.97%, and Bilibili (BILI) advanced 2.67%; GDS Holdings (GDS) fell 7.28%, Hesai (HSAI) dropped 4.93%, and Alibaba (BABA) declined 3.61%.

Corporate News

Amazon Secures $17.5 Billion Loan, Financing Led by Citi

Amazon disclosed in a regulatory filing on Wednesday that it has signed a $17.5 billion delayed-draw term loan agreement with a group of banks led by Citigroup.

According to the filing, the lenders agreed that the loan facility will be available until late September. Amazon has a three-year repayment term following each withdrawal. The interest rate is the Secured Overnight Financing Rate (SOFR) plus 62.5 to 87.5 basis points, with the specific margin determined by Amazon's credit rating.

Other banks participating in the deal include JPMorgan Chase, Bank of America, HSBC, and Wells Fargo, with over a dozen other banks co-funding the facility.

Oracle Wins U.S. Federal Government HR Platform Contract

The Trump administration formally announced that Oracle successfully won the bid for the U.S. federal government's inter-agency human resources platform project. As the lead HR authority for the federal government, the U.S. Office of Personnel Management (OPM) stated that Oracle will provide cloud-based HR solutions to comprehensively replace the disparate, standalone HR systems currently operated across various federal agencies.

OpenAI Reportedly Plans to Go Public Within a Year

According to media reports, CEO Sam Altman stated in an internal memo to employees earlier this week that OpenAI is expected to go public "within the next year," though he noted that several factors could accelerate or delay the timeline. Altman said that if the company achieves a technological breakthrough where AI autonomously creates new AI (i.e., Recursive Self-Improvement, or RSI), it may proactively slow the pace of a rapid IPO.

Industry & Macro News

Trump Vows to Strike Iran "Very Hard"

U.S. President Donald Trump issued a new threat of military action against Iran. He stated that due to the slow progress of negotiations to end the conflict, the U.S. would resume military strikes. Using Iran's shootdown of a U.S. military helicopter on Monday as a pretext, he vowed to strike Iran "very hard," claiming that U.S. forces dealt a heavy blow on Tuesday and would strike "severely" again on Wednesday.

Trump Discloses Secret U.S. Military Oil Transport Operation

U.S. President Donald Trump stated on Wednesday that the U.S. military has secretly assisted 200 merchant ships in transporting a total of over 100 million barrels of oil through the Strait of Hormuz. On social media, he boasted that the U.S. has gained complete control over the strait, that the Iranian military has been defeated, and its economy has completely collapsed. He added that these secret transport operations successfully kept oil prices around $90 per barrel, preventing them from soaring above $200.

Trump's Two Additional Demands on Iran Delay Agreement

According to media reports, if Trump had accepted the terms reached by his negotiating team last month, the U.S. and Iran would likely have reached a preliminary agreement by the end of May. However, on May 29, he demanded that Iran begin diluting enriched uranium within 60 days and never collect tolls from vessels in the Strait of Hormuz. In exchange, he agreed that the enriched uranium could remain in Iran under UN supervision. According to sources and U.S. officials, Iranian Foreign Minister Abbas Araghchi told mediators and the U.S. that he needed four to five days to provide a response, but this ultimately turned into a nearly two-week wait.

U.S. Treasury Refunds $22 Billion in Tariffs in May

The U.S. Treasury Department announced Wednesday that it refunded nearly $22 billion in tariff revenue to importers in May, a more than tenfold increase from $2 billion in April. This marks the first major round of refunds following a Supreme Court ruling that the tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA) were unlawful. Due to the massive refunds, net tariff revenue for May was essentially zero.

U.S. Inflation Data Mixed: Headline Figure Hits Three-Year High While Core Gauge Cools

Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the headline CPI rose 4.2% year-over-year in May, the largest increase since early 2023. Core CPI, which excludes food and energy, rose 0.2% month-over-month, lower than the expected 0.3%, and increased 2.9% year-over-year.