Stocks Resume Decline as Chipmakers and AI Companies Fall

The S&P 500 Index ($SPX) (SPY) today is down -0.61%, the Dow Jones Industrial Average ($DOWI) (DIA) is down -0.88%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.80%.  June E-mini S&P futures (ESM26) are down -0.71%, and June E-mini Nasdaq futures (NQM26) are down -0.97%.

Stock indexes are sliding for a second day today, as chipmakers and AI-infrastructure stocks retreat.  Also, rising crude oil prices are weighing on airline stocks, and trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners.

Stocks found some support today after US May consumer prices came in as expected, easing inflation concerns.  Also, gains in crude oil prices today are lifting energy producers.

US May CPI rose +4.2% y/y, right on expectations and the fastest pace of increase in 3 years.  May core CPI rose +2.9% y/y, right on expectations, and the fastest pace of increase in 7 months.

US MBA mortgage applications rose +10.8% in the week ended June 5, with the purchase mortgage sub-index up +7.3% and the refinancing mortgage sub-index up +15.3%.  The average 30-year fixed rate mortgage rose +3 bp to 6.60% from 6.57% in the prior week.

WTI crude oil prices (CLN26) are up more than +1% today after the US and Iran exchanged strikes overnight.  The US said it had completed an operation that saw fighter jets strike Iranian air defenses, ground control stations, and radar sites near the Strait of Hormuz in retaliation for Iran shooting down a US Apache helicopter.  In response, Iran launched missiles at four US military targets and fired drones at the main US naval base in the Middle East, located in Bahrain, and struck Ali Al Salem air base in Kuwait.  Gains in crude prices accelerated today when President Trump said that Iran has taken too long to make a deal and that they will now have to “pay the price,” fueling concerns that the US may escalate military attacks on Iran.

The markets are discounting a 0% chance of a +25 bp rate hike at the next FOMC meeting on June 16-17.

Overseas stock markets are mixed today.  The Euro Stoxx 50 recovered from a 2.5-week low and is up +0.03%.  China's Shanghai Composite closed down -0.42%.  Japan's Nikkei Stock Average closed down -1.89%.

Interest Rates

September 10-year T-notes (ZNU6) today are down -1 tick, and the 10-year T-note yield is up +0.2 bp to 4.519%.  T-notes are under slight pressure today after a +1% jump in WTI crude oil, which has raised inflation expectations.  Supply pressures are also weighing on T-note prices as the Treasury will auction $39 billion of 10-year T-notes later today.  T-notes recovered from their worst levels after the US May CPI report rose as expected, easing inflation concerns. 

European government bond yields are moving higher today.  The 10-year German Bund yield climbed to a 2.5-week high of 3.088% and is up +1.7 bp to 3.060%.  The 10-year UK gilt yield is up +1.7 bp to 4.920%.

Swaps are discounting a 100% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.

US Stock Movers

Chipmakers and AI-infrastructure stocks are leading the broader market lower today.  ON Semiconductor (ON) is down more than -5%, and Qualcomm (QCOM) is down more than -5% to lead losers in the Nasdaq 100.  Also, Western Digital (WDC) and Broadcom (AVGO) are down more than -4%, andAdvanced Micro Devices (AMD), NXP Semiconductors NV (NXPI), ARM Holdings Plc (ARM), and Microchip Technology (MCHP) are down more than -3%.  In addition,  Nvidia (NVDA), Marvell Technology (MRVL), and Micron Technology (MU) are down more than -2%.

Trucking companies are under pressure today after Amazon expanded its LTL freight offering to all destinations in the US, including third-party warehouses, distribution centers, and retail partners.  Old Dominion Freight Line (ODFL) is down more than -4%, and FedEx Freight Holding Co (FDXF), ArcBest (ARCB), and XPO Inc (XPO) are down more than -3%.  Also, Saia Inc (SAIA) is down more than -2%, and CH Robinson Worldwide (CHRW) and JB Hunt Transport Services (JBHT) are down more than -2%. 

Airline stocks and cruise line operators are falling today, as WTI crude oil is up more than 1%, which is boosting fuel costs and dampening profitability prospects.  United Airlines Holdings (UAL), Alaska Air Group (ALK), and Carnival (CCL) are down more than -4%, and American Airlines Group (AAL), Delta Air Lines (DAL), Royal Caribbean Cruises (RCL), and Norwegian Cruise Line Holdings (NCLH) are down more than -3%.  Also, Southwest Airlines (LUV) is down more than -2%. 

Energy producers and service providers are moving higher today, with WTI crude oil up more than +1%.  Devon Energy (DVN) is up more than +5%, and APA Corp (APA) is up more than +3%.  Also, ConocoPhillips (COP), Marathon Petroleum (MPC), Phillips 66 (PSX), and Chevron (CVX) are up more than +2%.  In addition, Diamondback Energy (FANG), Exxon Mobil (XOM), Halliburton (HAL), and Valero Energy (VLO) are up more than +1%.

Super Micro Computer (SMCI) is down more than -17% to lead losers in the S&P 500 after saying it plans $7 billion in equity and equity-linked financing transactions to fund component purchases. 

Dianthus Therapeutics (DNTH) is down more than -13% after peer developer Sanofi halted a late-stage trial of an experimental therapy for a rare autoimmune disorder, citing efficacy concerns. 

Summit Therapeutics (SMMT) is down more than -7% after announcing it had commenced an underwritten public offering of $500 million of shares of its common stock. 

Cracker Barrel Old Country Store (CBRL) is up more than +27% after raising its full-year revenue forecast to $3.27 billion to $3.30 billion from a previous estimate of $3.24 billion to $3.27 billion, stronger than the consensus of $3.25 billion. 

Casey’s General Stores (CASY) is up more than +14% to lead gainers in the S&P 500 after reporting Q4 revenue of $4.57 billion, above the consensus of $4.32 billion.

Illumina (ILMN) is up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $185. 

Hinge Health (HNGE) is up more than +2% after raising its full-year revenue forecast to $818 million to $824 million from a previous estimate of $798 million to $804 million.

Earnings Reports(6/10/2026)

Chewy Inc (CHWY), Core & Main Inc (CNM), Oracle Corp (ORCL).