US stocks slump amid AI sell‑off and Middle East tension

U.S. equity markets experienced sharp swings in early June 2026 as artificial‑intelligence‑linked shares tumbled and geopolitical friction raised oil prices. On June 10‑12 the S&P 500 fell between 0.5 % and 1 %, the Dow slipped about 0.5 % and the Nasdaq dropped 1‑3 % – its worst week since October. Technology and chip makers bore the brunt: Micron, Marvell, Nvidia, AMD and Broadcom swung double‑digit percentages, with some AI‑related stocks rebounding later in the session.

The volatility was amplified by renewed fighting between Iran and Israel, which briefly pushed Brent crude above $98 before it retreated to the low $90s. Higher oil fed inflation concerns, lifted U.S. Treasury yields and reinforced expectations that the Federal Reserve may raise rates later in the year. Traders also watched upcoming U.S. inflation data and a planned SpaceX IPO. By the following day, tech stocks recovered modestly and broader indexes edged higher, though market volatility remained elevated.