The Nasdaq Composite dropped 2% on Wednesday, June 10, 2026, as a broad selloff in technology and artificial intelligence stocks weighed heavily on the market. The decline pushed the index down 509.32 points to close at 25,169.50, marking its fifth loss in the last six trading sessions.
The S&P 500 fell 1.6% to 7,266.99, while the Dow Jones Industrial Average shed 953.33 points, or 1.7%, ending at 49,918.78. The Philadelphia Semiconductor Index (SOX) tumbled 3.6%, bringing its weekly loss to 13%.
Super Micro Computer (SMCI) was the biggest loser among AI-related names, plunging 28% after announcing plans to raise $7 billion through equity and equity-linked offerings. The company said the capital would be used to fund parts for high-end AI servers, supporting roughly $39 billion in orders from over 20 customers. The move raised concerns about the sustainability of AI infrastructure spending.
Nvidia (NVDA) slid 3.8%, contributing to the broader tech downturn. Oracle (ORCL) dropped 5% in after-hours trading despite reporting better-than-expected quarterly revenue and profit, as the company disclosed plans to raise nearly $40 billion in debt and equity by 2027.
Inflation fears resurfaced after the Consumer Price Index rose 4.2% year-over-year in May, hitting a three-year high. Energy prices surged amid ongoing conflict in the Middle East, with Brent crude oil climbing 1.8% to $93.10 a barrel. President Donald Trump warned that the U.S. would strike Iran "very hard" if peace talks fail, adding to geopolitical uncertainty.
"The market is walking a narrow line," said Florian Ielpo, head of macro at Lombard Odier Investment Managers. He noted that if oil prices remain above $95 for an extended period, the economy could drift toward stagflation—a combination of weak growth and high inflation.
Technical analysts pointed to further downside risks. Daniel O'Regan at Mizuho said Friday's selloff likely caused "technical damage" to commodity trading advisor (CTA) and quantitative strategies, which could trigger additional selling if key price levels are breached.
InvestingLive's Itai Levitan noted that Nasdaq futures remain neutral to slightly bearish as long as they stay below 29,110, with the first bearish threshold at 28,960. He cautioned that the recent rebound "has not yet become a confirmed bullish repair."
The selloff underscores growing investor anxiety over the intersection of rising inflation, geopolitical tensions, and the high capital requirements of the AI sector. As companies like Super Micro seek massive funding to meet demand, questions about profitability and return on investment are mounting.
