Trump Iran threat, hot CPI and tech sell-off hit markets

President Donald Trump warned the United States would be “attacking them, attacking them very hard” in response to renewed clashes with Iran after overnight strikes that damaged a fragile truce. The comments came as West Texas Intermediate crude rose above $90 and settled near $91.84 a barrel, and as the US Labor Department reported consumer prices increased 4.2% year‑on‑year in May, the largest annual rise since April 2023.

Equity markets fell on the news and data. The S&P 500 declined 1.6% and the Nasdaq 100 lost about 2%. A US Wall Street 30 proxy, representing the Dow, dropped roughly 1.9% and breached its 20‑day moving average. The benchmark 10‑year US Treasury yield rose to about 4.55% and spot gold fell as real yields increased.

Technical observers noted the Dow broke below an ascending channel that began on March 30, with short‑term resistance seen between 50,390 and 50,540 and nearer supports in the 49,700s and 49,200s.

Technology and semiconductor shares led losses. A semiconductor index slid roughly 3.6% as hardware weakness weighed on growth names. Fund managers were reported to be raising cash ahead of large private share sales and IPOs, including a fixed‑price SpaceX placement at $135 a share and a confidential IPO filing by an AI developer, which market participants cited as a factor pressuring public tech valuations.

Amazon announced an expansion of its private shipping network, and shares of several large freight and logistics companies moved lower after the announcement.

Asian markets opened lower following New York’s selloff. South Korea’s KOSPI fell about 2.4% and Taiwan’s TAIEX dropped roughly 2.3%. Japan’s Nikkei 225 slid 1.5% and Hong Kong’s Hang Seng lost 1.4%. The South Korean won traded near 1,530 per US dollar, a 17‑year low. The Australian dollar traded near $0.70 and the Indonesian rupiah, which hit a record low of about 18,180 earlier in the week, showed tentative stabilization after Bank Indonesia delivered a surprise emergency rate hike.

In fixed income and FX, German 10‑year Bund yields rose to roughly 3.08% and UK 10‑year gilt yields moved toward 4.95%. The US Dollar Index was little changed as markets awaited the European Central Bank rate decision, where a 25 basis‑point increase was expected.

US Central Command later said strikes on Iranian targets had been “completed.” Traders also cited the ECB decision and press conference, US producer price data and weekly initial jobless claims as near‑term events to watch for further market direction.