S&P 500 futures up 0.7% after two consecutive declines. Wednesday’s session was marked by another rotation out of technology, with semis and memory extending recent losses and the SOX now down more than 12% since June 3. Several cyclical groups that had benefited from rotation earlier in the week, including machinery, building materials, homebuilders, and credit cards, also came under pressure. Overseas markets were mixed, with Asian indexes finishing well off overnight lows and European equities trading mostly higher. Treasuries are slightly firmer with modest curve bull flattening, the dollar is up 0.2%, gold is down 0.5%, silver is off 0.9%, Bitcoin futures are up 1.4%, and WTI crude is down 0.8%.
Markets are balancing oversold conditions against a still-uncertain geopolitical and macro backdrop. The U.S. and Iran exchanged additional strikes overnight, with President Trump warning of continued military action if Tehran rejects a temporary peace proposal, while Iran threatened to close the Strait of Hormuz. Meanwhile, AI remains a central market theme, though investors are increasingly scrutinizing returns on AI spending. Reports that OpenAI is considering significant price cuts to win customers have raised concerns about future industry pricing pressure ahead of several high-profile AI-related IPOs. Oracle’s earnings also reinforced the debate, with investors focusing less on strong demand and more on sharply higher capital spending requirements and plans to raise additional capital. Growing equity issuance across the sector has added to concerns about supply ahead of Friday’s anticipated SpaceX IPO.
Economic Calendar
Today’s key releases include initial jobless claims and May PPI. Initial claims are expected to edge down to 216K after reaching their highest level since early February last week, while continuing claims are expected to rise modestly to 1.79M. Core PPI is expected to slow to 0.3% m/m from April’s 1.0% increase. Treasury will also auction $30B of 30-year bonds this afternoon following Wednesday’s well-received $39B 10-year auction. Friday’s focus shifts to the preliminary June University of Michigan Consumer Sentiment report, with consensus expecting a modest rebound to 47.8 from 44.8.
Information Technology
- ORCL: Fiscal Q4 earnings beat expectations and guidance exceeded forecasts. However, investors focused on plans for approximately $70B in FY27 capital expenditures and management’s intention to raise roughly $40B in additional capital.
- OpenAI: Reportedly considering significant reductions in token pricing as it seeks to gain market share from Anthropic ahead of a potential IPO.
- MSFT: Reportedly planning another round of layoffs within its Xbox gaming division.
- NAVN: Beat expectations and raised guidance, citing growing demand tied to AI-related opportunities.
- SFIX: Beat expectations and said it anticipates a return to active-client growth in FY27.
Communication Services
- OpenAI / Anthropic: Competitive pricing and infrastructure spending remain major topics as investors evaluate the economics of the AI ecosystem ahead of upcoming IPO activity.
Consumer Discretionary
- SFIX: Reported better-than-expected results and projected a return to active-client growth next fiscal year.
Energy
- SLB: Reached an agreement with Venezuela’s PDVSA to assist in upgrading energy infrastructure.
- AA: Management warned of a potential Q2 loss tied to energy-related disruptions and higher costs.
U.S. equities sold off sharply Wednesday, ending near worst levels, with the Dow down 1.87%, S&P 500 down 1.62%, Nasdaq down 1.98%, and Russell 2000 down 1.10%. The session marked another rotation out of technology, with semis and memory again notably weaker and the SOX now down more than 12% since June 3. The macro backdrop was mixed: May CPI was cooler at the core level, but the report did little to offset pressure from higher oil, geopolitical risk, and concerns around crowded AI positioning. Headline CPI rose 0.5% m/m, in line with consensus and down from April’s 0.6%, with energy the key driver; headline CPI was up 4.2% y/y. Core CPI rose 0.2% m/m, below the 0.3% consensus and down from April’s 0.4%, with shelter relatively contained at +0.3% m/m, though airfares rose notably. Treasuries were mostly weaker, with the 10-year yield up 2 bp to 4.54% and the 30-year up 2 bp to 5.03%, while the 10-year auction stopped on the screws with the best bid-to-cover since September 2025. The dollar rose 0.1%, gold fell 4.4%, silver declined 0.8%, Bitcoin futures slipped 0.2%, and WTI crude rose 2.5% to $90.36 as Trump adopted a more militant tone toward Iran.
The main market pressure came from another leg lower in semis, memory, and AI-linked equities. There was no single catalyst, but overbought conditions, crowded positioning, and recent momentum concentration remained central to the narrative. The geopolitical backdrop also stayed unsettled, with Trump again pledging more attacks on Iran and reports suggesting the U.S. may be considering strikes on additional infrastructure. The latest U.S.-Iran escalation did not fully shock markets, but it reinforced concerns that any negotiated settlement remains difficult. Corporate headlines also highlighted continued AI infrastructure demand, with OpenAI reportedly in talks for a 20-year lease on a 10 GW data-center campus, potentially with Nvidia financial backing, while Alphabet was said to be providing a financial backstop for its $35B chip-lease agreement with Anthropic.
Sector performance was sharply bifurcated. Consumer Staples led, up 1.69%, followed by Energy +1.46% and Real Estate +0.01%. Utilities were roughly flat, down 0.01%, while Financials fell 0.50% and Healthcare declined 1.15%. The main laggards were Industrials, down 3.41%, Materials down 2.45%, Technology down 2.34%, Consumer Discretionary down 2.23%, and Communication Services down 1.65%. Outperformers included staples, energy, insurers, regional banks, restaurants, REITs, utilities, and telecom. Laggards included semis, memory, tech hardware, MedTech, airlines, trucking, aerospace and defense, building products, machinery, credit cards, homebuilders, autos/suppliers, cruise lines, containerboard, copper/aluminum, nuclear, and retail-investor favorites.
Information Technology
- SMCI -28.0%: Announced roughly $7B of equity raises to fund component purchases needed to satisfy recent orders from more than 20 customers for advanced AI servers.
- BILL -5.0%: Downgraded to hold from buy at Truist, which cited decelerating revenue growth, limited positive catalysts, and intensifying competition.
- OpenAI / NVDA: The Information reported OpenAI is in advanced talks for a 20-year lease on a 10 GW data-center campus, with Nvidia potentially providing financial backing.
- GOOGL / Anthropic: Bloomberg reported Alphabet is providing a financial backstop for its $35B chip-lease agreement with Anthropic.
- ORCL: Reports after the close, with investors focused on AI infrastructure demand, cloud growth, and capex commitments.
- ADBE: Reports after the close Thursday.
Communication Services
- META -5.5%: Fell after reports that the company is considering raising tens of billions of dollars through an equity offering to fund AI ambitions. The report said Meta could boost AI-related capex to as much as $145B this year and even higher in 2027.
- DKNG +4.3%: Positive takeaways from the Jefferies Nasdaq Investor Conference, with net revenue up 24% y/y, sportsbook growth up 30%, and management expecting World Cup-driven engagement and prediction volume in H2 2026.
- HOOD +3.1%: CEO Vlad Tenev said Robinhood has been approved to serve as an IPO underwriter and intends to be a disruptor in the space.
Consumer Discretionary
- CAVA +6.9%: Upgraded to buy from neutral at UBS, which cited same-store sales outperformance versus peers despite a challenging macro backdrop and highlighted the company’s growth story.
- CHWY -2.1%: Q1 adjusted EBITDA beat, but revenue was in line and active customers, net adds, and net sales per active customer missed expectations. The company cut FY net sales guidance and cited pressure on premiumization and product attach rates.
Consumer Staples
- CASY +20.3%: Fiscal Q4 EPS, EBITDA, fuel margins, and revenue beat. Inside same-store sales rose 5.5% y/y, driven by prepared food and dispensed beverages, with strength in whole pizzas, appetizers, and sides. The company also raised its dividend by 14%.
- CBRL +22.6%: Q3 revenue and EPS beat, with comps improving 500 bp q/q. Analysts noted progress on traffic recovery and better-than-expected EBITDA improvement. The company raised FY26 revenue and earnings guidance and lowered its wage and commodity inflation outlook.
Energy
- DVN +5.8%: Provided guidance following the Coterra merger. Positives included removal of a share overhang, Q2 production guidance above consensus, reaffirmed free-cash-flow returns, and improved capital efficiency. Negatives included a wide Q2 guidance range, limited 2027 updates, and no enhancement to shareholder returns.
Financials
- Financials -0.50%: Regional banks and insurers held up better, while credit cards and broader risk-sensitive financials lagged.
Healthcare
- OSCR +2.3%: Upgraded to overweight from equal weight at Barclays, which cited single-line exposure to the ACA market, valuation near the low end of peers, and a tailwind from the shift toward a larger individual, non-employer workforce.
- ILMN +1.5%: Upgraded to overweight from neutral at JPMorgan, which cited a favorable customer survey.
- MedTech: Lagged despite the cooler core CPI print, contributing to Healthcare’s underperformance.
Industrials
- ODFL -5.1%: Fell after Amazon launched a U.S. expansion of its less-than-truckload freight offering for all businesses and destination types.
- AMZN: Expanded its U.S. less-than-truckload freight service to all businesses and destinations, pressuring freight and trucking names.
Eco Data Releases | Thursday June 11th, 2026
S&P 500 Constituent Earnings Announcements | Thursday June 11th, 2026
Data sourced from FactSet Research Systems Inc.
