The US stock market experienced significant volatility from June 5 to June 11, 2026, driven by geopolitical tensions between the US and Iran and fluctuations in the technology and semiconductor sectors [1, 2]. The S&P 500 futures fell 1.1% on June 10 as tech shares weakened following US-Iran strikes overnight [1].
On June 8, Wall Street rebounded sharply, led by chipmakers Intel, Nvidia, and Micron as a ceasefire between Iran and Israel eased regional tensions and helped moderate oil prices [3, 4, 5]. Intel shares jumped between 8.5% and 11.2% after reports that Alphabet's Google placed large chip orders [3, 4]. The Philadelphia Semiconductor Index gained between 4.6% and 5.6%, recovering from earlier losses that had erased about US$1 trillion in US-listed chipmaker market value [3, 4]. Broadcom shares also rose around 2.8% after concerns from earlier disappointing results [3, 4, 6].
However, renewed conflict escalated again in early June with Iran shooting down a US helicopter in the Strait of Hormuz and US airstrikes on Iran, driving oil prices above US$90 per barrel by June 11 [7, 8, 9, 2]. US consumer inflation rose 4.2% year-over-year in May, the highest since April 2023, partly attributed to rising energy costs related to the Middle East conflict [3, 10, 11, 8, 9].
President Donald Trump urged immediate ceasefires but vowed to respond to Iranian attacks, adding uncertainty and impacting market sentiment [3, 4, 7, 10, 11, 8, 9]. The S&P 500 tech sector corrected sharply, falling 11% from its June 2 record high by June 10, with semiconductor stocks leading the losses [11]. On June 10 and 11, shares of Super Micro Computer plunged between 14% and 28% after announcing a US$7 billion equity raise to fund AI server demand [10, 11, 8, 9].
Asian markets also declined amid US-Iran tensions and chip sector selloffs, with major losses among Taiwan and South Korea chipmakers including TSMC, Samsung, and SK Hynix [9, 2]. MSCI emerging markets equities fell 0.8% in early June, with US$27 billion in foreign capital outflows linked to the geopolitical tensions and AI stock selloffs [2].
Oil surged about 5% on June 8, with prices hovering around US$90 by June 11, amid escalations in the Middle East and Iran’s temporary closure of the Strait of Hormuz [3, 5, 10, 8, 9, 2]. Analysts noted disagreement over how much oil prices pared gains following Iran and Israel’s announcement of easing attacks that day [3, 5].
Market strategists stressed the need for a correction after rapid rallies earlier in the year. Art Hogan of B Riley Wealth said, "Sometimes these moves get too far too fast and you need a bit of a pullback" [3]. Morgan Stanley's Mike Wilson called the correction "inevitable and ultimately healthy." Rick Meckler of Cherry Lane Investments noted investors are "doing a little bit of bargain hunting off the big tech selloff" but cautioned the market had been priced for perfection [4, 5].
Expectations differ over the likelihood of Federal Reserve interest rate hikes. Some price in a 42% chance of a 25 basis point hike in December, while others see the risk as low due to slower wage growth despite strong jobs data [3, 5, 10, 11, 9].
Investors await the SpaceX initial public offering scheduled for June 12, expected to raise US$75 billion with a valuation near US$1.75 trillion, which has raised concerns about overexuberance in the tech sector [6, 7, 12, 11].
