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Live Nasdaq Composite: Market Rout Deepens as Inflation Hits Three-Year High and Oil Climbs

By Gerelyn Terzo · Updated Jun 10, 11:56am ET · Published Jun 10, 9:37am ET

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High Water Mark

JPMorgan is offering a measured read on Wednesday’s inflation print, characterizing May’s 4.2% CPI reading as the high-water mark for this cycle, according to Bloomberg. The bank expects the Federal Reserve to hold rates steady at its June 17 meeting, a view that aligns with where markets are currently trading. While the print will leave the Fed “somewhat uncomfortable,” JPMorgan’s chief global strategist at its asset management unit believes the numbers may represent inflation’s peak, offering a cautiously optimistic counterpoint to a morning that has markets on edge.

OpenAI Expansion

OpenAI is in discussions to anchor one of the most ambitious AI infrastructure projects ever conceived, with The Information reporting the ChatGPT maker is looking to lease a proposed 10-gigawatt data center campus on Department of Energy land in southern Ohio. The facility would be developed by SoftBank’s SB Energy, with OpenAI taking control of the equipment under a 20-year lease structure that kicks in once operations begin, with the first phase expected to come online in 2028. Nvidia (Nasdaq: NVDA) is expected to supply the hardware and provide a financial guarantee covering both OpenAI’s lease obligations and SB Energy’s financing, adding another layer of the chip giant’s fingerprints to the AI infrastructure buildout that is reshaping the U.S. energy and real estate landscape.

Oracle Earnings Preview

Oracle (NYSE:ORCL) is set to report Q4 earnings after the bell. The Street is looking for EPS of $1.97 on revenue of $19 billion, a meaningful step up from the $1.70 and $15.9 billion posted in the same period a year ago. Cloud Infrastructure is the number to watch, with analysts projecting a 90.8% year-over-year jump to $5.17 billion, while remaining performance obligations are expected to hit $589.5 billion, up 327%, a figure that reflects the staggering scale of demand Oracle is sitting on thanks in large part to its $300 billion, five-year deal with OpenAI. The report arrives at a delicate moment for the AI trade, with chip stocks under renewed pressure and markets on edge heading into next week’s Fed decision.

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This article will be updated throughout the day, so check back often for more daily updates. 

The Nasdaq Composite is under pressure as two familiar headwinds converge at once: reignited tensions in Middle East tensions and an inflation reading that came in hotter than expected. Nasdaq 100 futures are shedding 0.7%, S&P 500 futures are off 0.5%, and Dow futures are down 257 points as traders digest a morning that offers little comfort on either the geopolitical or economic front.

The inflation data landed in line with expectations, with the CPI rising 0.5% for May and pushing the annual rate to 4.2%, the highest since April 2023, driven largely by a 3.9% monthly jump in energy prices. The geopolitical backdrop is not helping. U.S. forces launched fresh strikes against Iran overnight in response to the downing of a U.S. Army Apache helicopter over the Strait of Hormuz, and President Trump warned early Wednesday that Iran has “taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!” WTI crude futures climbed roughly 2% to trade around $90 a barrel, keeping inflation pressure firmly in the conversation ahead of next week’s Federal Reserve decision.

Here’s a look at where things stand as of pre-morning trading:

Dow Jones Industrial Average: 50,528 Down 0.68%
Nasdaq Composite: 25,444 Down 0.91%
S&P 500: 7,343 Down 0.58%

Market Movers

With the SpaceX IPO roadshow already several times oversubscribed and pricing on the horizon, the wealth creation story inside the company is coming into focus. The debut is expected to mint roughly 4,000 new millionaires among SpaceX employees, according to Yahoo Finance. Elon Musk’s own net worth is expected to cross the $1 trillion threshold once SpaceX hits the public markets.

Chip stocks are back under the microscope Wednesday, with Micron Technology (NASDAQ:MU | MU Price Prediction), Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) all sliding in premarket trade, marking four down sessions in the past five for the group. The iShares Semiconductor ETF is off another 3% after rolling over on Tuesday, extending a stretch of turbulence that began last week with Friday’s punishing 10% collapse, the ETF’s worst single day in six years.

Meta Platforms (NASDAQ:META) is extending its AI infrastructure footprint into India, announcing a lease agreement with Reliance Industries for an AI-enabled data center carrying 168 megawatts of capacity, according to CNBC.

Contact [email protected] for any questions or corrections.

Gerelyn Terzo

Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.

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