US stock markets experienced sharp volatility this week as geopolitical and inflation concerns roiled investors. On June 8, the Philadelphia Semiconductor Index jumped 5.6%, led by Intel’s 11% gain amid reports of Google TPU orders, after Iran and Israel announced a cessation of hostilities, calming fears and sparking a rebound following a violent AI-driven tech selloff earlier in the week [1, 2, 3, 4, 5]. That day also saw Taiwan’s TAIEX index plunge 3.48%, reflecting regional volatility [3, 6, 4, 5].

By June 9, US markets showed mixed performance, with defensive sectors like real estate, healthcare, and utilities outperforming amid rising uncertainty [7, 8]. However, on June 10, tension sharply escalated when President Trump ordered retaliatory airstrikes on Iran after an American Apache helicopter was shot down near the Strait of Hormuz [9, 7, 10, 11]. That day, the US May Consumer Price Index rose 4.2% year-over-year, a three-year high, stoking inflation fears [11].

The combined geopolitical and economic shocks led to a steep selloff in US stocks, erasing $1.25 trillion in market value [11]. The Dow Jones Industrial Average dropped 953.33 points (1.87%), the Nasdaq fell 505.31 points (1.98%), and the S&P 500 declined 119 points (1.61%) [11]. Volatility measures such as the VIX rose for a second consecutive day, reflecting investor anxiety over the risks ahead [11]. US Treasury yields also climbed, with 10-year notes surpassing 4.5% and 30-year bonds passing 5%, raising worries about borrowing costs [11].

Market experts pointed to a mix of momentum trading and caution amid fragile conditions. Rick Meckler of Cherry Lane Investments said the rebound on June 8 "looked like investors buying the dip after a tech selloff," but warned of "concerns whether prices have risen too far" [5]. Louis Navellier added that bargain hunting was tempered by serious geopolitical risks around Iran [2]. Bank of America strategist Tom Hainline said "the market may have priced in higher interest rate prospects while also fearing war" [11].

The SpaceX IPO on June 12 also attracted attention, rising 19% on its Nasdaq debut and boosting sentiment in the tech sector ahead of the recent turbulence [2, 12]. As markets settle, investors will watch for further developments in US-Iran relations and upcoming inflation reports.

The next major event is SpaceX’s Nasdaq listing debut on June 12, expected to draw significant market interest [2, 12].