10.06.202613:40:06UTC+00US Stocks Lower as Tech Sector Drags

US stocks declined on Wednesday, with the S&P 500 down 0.6%, the Nasdaq off 0.8%, and the Dow Jones lower by 280 points, as a renewed selloff in technology shares weighed on sentiment amid persistent concerns about stretched AI-related valuations. Nvidia (-1.4%), Broadcom (-3.9%), and Micron Technology (-3.5%) were among the sharpest decliners, while Oracle slipped 2.4% ahead of its earnings release after the closing bell. The industrial sector also weakened, though energy stocks outperformed as oil prices climbed amid ongoing clashes between Iran and the US.

On the macro front, the latest CPI report showed US annual inflation accelerating to 4.2% in May, in line with expectations, while core inflation rose by a softer-than-expected 0.2% on the month. The figures offered some reassurance that the energy-driven price shock has not yet significantly spilled over into broader inflation pressures. Even so, markets continue to fully price in a 25-basis-point interest rate increase in December.