Today’s Market Recap: CPI Rises 4.2% to a Three-Year High; Trump Threats Against Iran Send U.S. Stocks Tumbling; SpaceX Unveils “Super Loop” Ahead of IPO; Supermicro Plummets 28%

Tracking the Market Trend

Tradingkey - On June 10, the U.S. May CPI hit a three-year high, and combined with Trump’s new threats of military action against Iran, these factors dampened market sentiment. All three major U.S. stock indices closed lower, with technology stocks broadly underperforming.

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

Semiconductor stocks underperformed the broader market overall, with the Philadelphia Semiconductor Index dropping 3.6%. Qualcomm (QCOM) fell nearly 7%, Broadcom (AVGO) dropped more than 5%, and Nvidia (NVDA) fell nearly 4%; Supermicro (SMCI) plummeted 28% after announcing an equity financing plan; Following its earnings report, Oracle (ORCL) fell more than 9% in after-hours trading.

The dollar rose above 160.50 against the yen during the session, hitting a new low since Japan’s intervention in late April; Bitcoin briefly surpassed $62,000 during the session before edging lower.

Driven by Trump’s escalating threats of an attack on Iran, crude oil prices rebounded, with WTI crude rising over 4% intraday and closing above the $90 mark; precious metals fell for the fourth consecutive day, with gold dropping over 4% intraday. After the release of U.S. CPI data, gold’s losses narrowed temporarily, but gold futures hit new six-month lows for two consecutive trading days.

Market Headline

U.S. CPI rose at a three-year high year-over-year in May, but the month-over-month increase slowed and fell short of expectations. CPI rose 4.2% year-over-year that month, while core CPI accelerated to 2.9%; however, the month-over-month increase moderated and fell short of market expectations. Following the release of the data, the market forecasts that the Federal Reserve will raise interest rates by a cumulative 26 basis points by the end of the year, which is largely unchanged from previous projections.

On the eve of its IPO, SpaceX’s CFO detailed the “five-in-one super closed-loop” system. This system is composed of Starship launches, Starlink, orbital computing, ground-based AI, and the in-house Terafab chip: Starship provides an ultra-low-cost launch platform, supporting Starlink in generating massive cash flow; this cash flow in turn fuels the expansion of orbital and ground-based AI computing power; and Terafab chip manufacturing underpins the scalability of the entire ecosystem from the supply chain end.

Anthropic CEO calls for governments to have the authority to block or restrict the deployment of high-risk new AI models. CEO Dario Amodei noted that AI models must undergo mandatory third-party testing covering multiple risk dimensions, including cybersecurity threats and bioweapons. If a model is deemed to pose “unacceptable risks,” the government should have the right to intervene. In contrast, the executive order signed by President Trump earlier this month only requires AI developers to provide voluntary access to the government and does not mandate approval for model deployment.

OpenAI’s CEO expects the company to go public within the next year, with GPT-5.6 potentially launching this month. CEO Sam Altman told employees that the previous filing of the prospectus was merely to maintain flexibility; he also announced the launch of an employee stock sale priced at $687.69 per share. The company’s head of research stated that GPT-5.6 represents a major upgrade over GPT-5.5.

Concerns over data center costs are mounting, as Oracle’s capital expenditures exceeded expectations last quarter, sending its stock plunging in after-hours trading. Oracle’s capital expenditures for the fourth fiscal quarter reached $15.9 billion, with total spending for the full fiscal year rising to $55.7 billion, surpassing the company’s forecast of $50 billion. The company expects net capital expenditures to reach $70 billion in fiscal 2027. Cost pressures overshadowed the positive impact of surging AI business, causing the stock price to drop by more than 9% in after-hours trading.

TSMC（TSM） May revenue rose 30% year-over-year, with strong demand for AI chips supporting its full-year outlook. Revenue for the month reached NT$416.98 billion (approximately $13.2 billion), a 30% year-over-year increase. Analysts expect the company’s overall second-quarter sales to grow by 35% year-over-year. CEO Wei Zhejia made it clear at a shareholders’ meeting earlier this month that global chip supply will continue to fall short of market demand for the next several years.

Top 10 Most Traded Stocks

The table below lists the ten most actively traded stocks on Wednesday. With their massive trading volume and excellent liquidity, these assets have become key indicators for tracking global market trends.