The three major New York stock indexes opened lower as they digested rising military tensions between the United States and Iran and the May consumer price index (CPI) results.
As of 9:38 a.m. on the 10th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average fell 336.77 points, or 0.66%, to 50,535.34. The Standard & Poor's (S&P) 500 index fell 29.44 points, or 0.39%, to 7,357.61, and the Nasdaq composite declined 125.52 points, or 0.49%, to 25,553.30.
The conflict between the United States and Iran is still weighing on stocks. After Iran shot down a U.S. Army Apache helicopter in the Strait of Hormuz, the United States carried out airstrikes on military facilities in Iran. Iran then launched a drone attack targeting the U.S. Navy's 5th Fleet stationed in Bahrain.
With armed clashes between the two countries resuming, U.S. President Donald Trump suggested the possibility of additional strikes. In an interview with Fox News, Trump hinted that new attacks could continue if Iran was not willing to sign a cease-fire agreement.
The May CPI released that day also drew market attention. According to the U.S. Labor Department, the all-items CPI for May rose 0.5% from the prior month on a seasonally adjusted basis. Although it slowed from April's 0.6% increase, the upward trend in prices continued.
Core CPI, excluding food and energy, rose 0.2% from the prior month, slowing from April's 0.4%. Year over year, the all-items CPI rose 4.2%, marking a record high since April 2023. Core CPI rose 2.9%, with the increase widening from April's 2.8%.
Marta Norton, chief investment strategist at Empower Investments, said, "What has lifted the stock market in recent weeks were memory and semiconductor-related names," and added, "They have climbed sharply and now feel like an overheated phase." Norton continued, "Since investor sentiment had become excessively elevated, the market is undergoing some degree of correction."
By sector, technology and energy were strong, while communication services and real estate were weak.
Among individual stocks, Oracle rose more than 1% ahead of its earnings release after the close. Super Micro Computer said it would pursue a roughly $5 billion stock offering and a $2 billion sale of equity in the open market starting in July to fund hardware component purchase expense, sending its shares down more than 13%.
Nike weakened after RBC cut its investment rating to "sector perform" from "outperform." RBC said Nike's earnings rebound is smaller and slower than expected.
Cracker Barrel, by contrast, surged more than 30% after its third-quarter results and full-year guidance topped market expectations. The company's adjusted earnings per share (EPS) for the third quarter came in at $0.29, with revenue of $797.4 million. The market had expected Cracker Barrel to post a third-quarter net loss of $0.48 per share.
European stocks also fell. The Euro Stoxx 50 index traded at 6,044.09, down 0.09% from the previous session. France's CAC 40 and Germany's DAX fell 0.29% and 0.67%, respectively, and the U.K.'s FTSE 100 also lost 0.14%.
International oil prices rose on heightened Middle East tensions. At the same time, West Texas Intermediate (WTI) for July 2026 delivery, the nearest-month contract, rose 1.39% from the previous session to $89.43 a barrel.