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What recent events are affecting the stock market?
public.com presents the rundown your daily market update in 10 minutes my name is zaydad mani and today is thursday june 11th in today's episode we'll break down the latest escalation in the iran war and another hot inflation report
We'll also tell you why Oracle stock is dropping despite strong earnings and why OpenAI is considering slashing its prices. Then stick around to the end of the show to find out why World Cup ticket scalpers are about to lose big. We got a great show for you today. Let's go. Markets took another step down on Wednesday. The S&P 500 dropped 1.6%, closing at its lowest level in five weeks.
And the NASDAQ was even worse. It fell 2%. You know, I think there are a couple of things going on here. For one, chip and AI stocks just continue to get dragged down. The stock semiconductor ETF was down 3.7% yesterday, and it's now down 12% from its highs from last week. And it also seems like the AI sell-off is spreading to other sectors.
the industrial sector was the worst performing on Wednesday, down 3.4%. See, a lot of these industrial companies have been riding the data center build-out wave. For example, Caterpillar, which makes construction equipment, their stock has more than doubled over the last year, but shares were down more than 6% yesterday. So we're starting to see more parts of the AI trade starting to unwind.
But beyond just AI, I think the market is also paying attention to what's happening in the Middle East again. Things are escalating between the US and Iran. The two sides have now exchanged fire for the second straight day.
And then this morning, President Trump posted on Truth Social that the US will hit Iran, quote, very hard tonight, and that the US military plans to seize Karg Island, which handles roughly 90% of Iran's oil exports. So it seems like the war is starting to heat up again and oil prices are taking back up. And if oil prices stay elevated, well, then inflation could continue being a problem.
In fact, this morning, we got the PPI report, which measures inflation at the wholesale level. Basically, it's the prices that businesses pay before costs reach consumers. And this report came in hot. Wholesale prices jumped 1.1% in May compared to April. That was way above the 0.7% jump that was expected.
So between the AI unwind and the war re-escalating and rising inflation, the market is losing momentum faster than the San Antonio Spurs in the second half of a game. Shout out to the New York Knicks, by the way. What a game last night. I'm still not fully recovered from what I saw. Anyways, we'll continue to stay on top of everything happening in the markets and the NBA finals for that matter.
So make sure you guys are locked into the podcast and tuning in every day to stay in the loop. Let's run through some headlines, starting with Oracle. Oracle reported earnings last night, and despite the company beating on both top and bottom line and raising their forecast, the stock still fell. And it's a good example of how the market is changing how it judges AI companies.
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