New York, June 10, 2026, 18:01 EDT
Nasdaq drops 2% as tech, AI names drag stocks lower The Nasdaq Composite slid 2% on Wednesday, sinking as tech and AI shares sold off. The S&P 500 finished down 1.6% at 7,266.99. The Dow Jones Industrial Average dropped 953.33 points to 49,918.78. The Nasdaq closed down 509.32 points at 25,169.50.
Big tech isn’t holding up the way it did earlier. Reuters columnist Jamie McGeever said AI and tech stocks have pulled the bigger indexes down. The Nasdaq has fallen five of the last six sessions, and the Philadelphia semiconductor index, or SOX, is down 13% for the week.
Inflation pain isn’t only showing up in the numbers. The consumer price index jumped 4.2% in May from a year ago, hitting a three-year high as energy prices moved higher during fighting in the Middle East. “Americans are being squeezed financially by inflation,” said Heather Long, chief economist at Navy Federal Credit Union. Reuters
Oil prices rose again. Brent crude finished at $93.10 a barrel, up 1.8%. President Donald Trump warned the U.S. would strike Iran “very hard” if peace talks fail. Phil Flynn, senior analyst at the Price Futures Group, said oil has swung “from anxiety to apathy and back again.” Reuters
Nasdaq’s drop had been coming. Barron’s reported the index turned lower on Tuesday, dropping as much as 3.7% and testing its 50-day simple moving average, which tracks the last 50 sessions. Daniel O’Regan at Mizuho said Friday’s selloff probably dealt “technical damage” to CTA and quant strategies. That points to rules-based funds that move in or out when certain price levels get hit. Barron’s
Nasdaq leads U.S. indexes lower with 500-point drop, tech hit market late — MarketWatch
The Nasdaq dropped over 500 points by late Wednesday, MarketWatch reported, as a late-session tech selloff dragged the market. The S&P 500 slipped 1.6% and the Dow was off by 1.7% in the same stretch.
InvestingLive’s Itai Levitan said Nasdaq futures remain neutral to slightly bearish as long as they stay under 29,110. The first bearish level is 28,960. Levitan said the recent rebound “not yet become a confirmed bullish repair.” He pointed to an hourly exponential moving average, explaining it’s a trend line that puts more focus on recent prices. investingLive
AI stocks led the action. Nvidia slid 3.8%, with the SOX chip index off 3.6%. Super Micro Computer sank 28% for the session, Reuters reported. Oracle shares dropped 5% after hours as the company said it planned to raise almost $40 billion in debt and equity in 2027, despite posting better-than-expected quarterly revenue and adjusted profit.
Super Micro raised eyebrows Tuesday after it said it plans to pull in $7 billion via equity and equity-linked deals to help pay for parts for high-end AI servers. The company said the move would give it the cash to fill roughly $39 billion in orders from over 20 customers. The capital move feeds into questions about funding and spending for AI infrastructure.
Still, there are other scenarios. Florian Ielpo at Lombard Odier Investment Managers said the market had priced in the Strait of Hormuz reopening in under three months. If oil holds above $95 longer, he said, it could move things toward stagflation—weak growth with high inflation. “The market is walking a narrow line,” Ielpo said. Reuters
