Daily News 11th June 26
Daily News
Dow Drops 900 Points as Trump Threatens More Iran Strikes, Inflation Hits 3-Year High
11 June 2026
Today in Brief
Asia-Pacific markets opened sharply lower Thursday, with South Korea's Kospi down 4.1% and Japan's Nikkei 225 declining 2.3%, after the Dow fell 953 points on Wednesday as Trump threatened further Iran strikes, saying negotiations were taking "too long." The S&P 500 lost 1.62% to 7,266.99 and the Nasdaq dropped 1.98% to 25,169.50. Oil climbed above $90 per barrel while gold stabilized near $4,100 an ounce, close to seven-month lows. US inflation hit 4.2% in May, a three-year high driven by surging energy costs.
Kuwait closed its airspace as Iran struck US bases in the Gulf following American retaliatory attacks. Trump said he loves the inflation data and predicted prices would fall once the Iran war ends. The ECB was poised for an insurance rate hike as euro zone inflation exceeded 3%. The Bank of Canada held rates steady. Oracle beat earnings but fell 10% on plans to raise $20 billion for AI. Sen. Warren called on the SEC to delay the SpaceX IPO. Panasonic announced US data centre battery production plans. Microsoft limited employee access to Anthropic's Claude Fable 5 over data retention concerns.
Asia-Pacific markets opened lower Thursday, with South Korea's Kospi leading losses
Asia-Pacific markets opened lower Thursday, with South Korea's Kospi leading losses. The Kospi dropped 4.1% in early trading. Japan's Nikkei 225 declined 2.3% and Australia's benchmark S&P/ASX 200 was down 0.97%. Shares of Oracle dropped more than 11% in extended trading after the software giant announced plans to raise an additional $20 billion in equity and debt to pay for its artificial intelligence buildout. The decline weighed on S&P 500 futures and the iShares Expanded Tech-Software Sector ETF (IGV), heralding potential losses in the tech sector in the upcoming session.
Dow drops more than 900 points as chip sell-off worsens, Trump threatens more Iran attacks
U.S. equities fell on Wednesday after President Donald Trump signaled that negotiations with Iran were taking "too long" and threatened more action. The Dow Jones Industrial Average fell by 953.33 points, or 1.87%, to 49,918.78. The S&P 500 lost 1.62% to end at 7,266.99, and the Nasdaq Composite dropped 1.98% to settle at 25,169.50. The major averages dropped after Trump pledged more Iran attacks, saying that "we're going to be attacking them very hard." He wrote 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!!!" Oil prices rose after Trump's threats. West Texas Intermediate crude futures settled up 2.07% to $90.03 a barrel, while Brent crude advanced 1.8% to settle at $93.10.
Gold stabilized near $4,100 an ounce on Thursday
Gold stabilized near $4,100 an ounce on Thursday after the US military announced it had completed its latest strikes on Iran, raising hopes that peace negotiations could resume and tempering some concerns over inflationary pressures. Earlier, the US launched fresh attacks on Iran after President Trump accused Tehran of delaying talks on an interim peace agreement, while Iran reportedly responded by targeting US vessels in the Strait of Hormuz. Even so, gold remained near seven-month lows as the prolonged conflict and the continuing near-total closure of Hormuz disrupted energy flows from the Persian Gulf, fuelling worries about higher inflation and interest rate hikes. Meanwhile, US inflation accelerated in May to its fastest pace in more than three years, driven by surging energy costs, though the reading matched market expectations.
Crude oil pulled back toward $91 per barrel on Thursday, paring gains from earlier in the session
Crude oil pulled back toward $91 per barrel on Thursday, paring gains from earlier in the session after the US military announced it had completed its latest strikes on Iran, raising hopes that peace negotiations could resume. The US earlier launched fresh attacks on Iran after President Donald Trump accused Tehran of delaying talks over an interim peace agreement. Iran also reportedly responded by targeting US vessels in the Strait of Hormuz with missile and drone attacks. The latest escalation reinforced the view that the April ceasefire has effectively unravelled, even though the large-scale bombing campaign seen at the outset of the conflict has not resumed.
Kuwait closes airspace, Israel warns of launches from Lebanon after U.S. strikes in Iran
Kuwait closed its airspace Thursday local time due to "Iranian aggressions" as it intercepted "hostile aerial targets," following U.S. strikes against Tehran, signaling rising tensions in the Middle East. Israel's Home Front Command also warned of launches from Lebanon toward several communities in northern Israel. Iran "struck and destroyed eighteen important targets" belonging to U.S. forces at Kuwait's Ali Salem and Ahmad al-Jaber air bases, as well as the Sheikh Issa air base in Bahrain, according to the state run Tasnim news agency. The media adviser to Bahrain's king said the country's air defense systems had intercepted and destroyed "Iranian aerial attacks." Bahrain's interior ministry had urged civilians to head to a safe place.
Trump says 'I love the inflation' after consumer price index hits 3-year high
President Donald Trump on Wednesday said, "I love the inflation" after being asked if he was concerned about new consumer price index data that showed the annual inflation rate at 4.2%, a three-year high. Trump, speaking with reporters in the Oval Office, also predicted that inflation is "going to come down like a rock" after the United States' war against Iran is over. The president linked that prediction to a confusing statement about the U.S. "taking" oil and ships. "No, I love it, the numbers were great," Trump said when a reporter asked him about the CPI number issued earlier in the morning by the Bureau of Labor Statistics. "You know what I really love? I love the inflation. You know why?" Trump said. "Because as soon as this war is over, you know I can say it now ... you know we've been taking out millions of barrels of oil."
ECB poised for 'insurance hike' as Iran war fans euro zone inflation
The European Central Bank is all but certain to raise interest rates on Thursday in the hope of nipping higher inflation in the bud before a surge in energy costs triggered by the Iran war spreads more broadly across the euro zone economy. The well-telegraphed move would come as inflation in the 21-country currency bloc is already above 3%, well in excess of the ECB's 2% target, and economic growth is very weak — a backdrop that has economists split over the case for tighter policy. ECB policymakers, some of whom had already pushed for action in April, are nonetheless expected to press ahead, seeking to keep a lid on inflation expectations and to safeguard their credibility after being slow to react to a post-pandemic inflation spike in 2022.
Bank of Canada holds rates, sees few signs energy prices broadly fueling inflation
The Bank of Canada on Wednesday left its key interest rate unchanged as expected and said it was seeing limited evidence that higher energy prices were fueling broad-based inflation. But Governor Tiff Macklem reiterated that the bank would not hesitate to raise rates if need be to keep inflation in check. Wednesday's decision marks the fifth consecutive meeting at which the BoC has left its key policy rate at the 2.25% level, as an array of factors have complicated the economic outlook. The Iran war, which has sent gasoline prices soaring, is squeezing household budgets, though Canada, as a net exporter of crude oil, is taking in more revenues. "So far there has been limited evidence of broad-based pass-through of higher energy prices to other consumer prices," the bank said in its rate announcement.
Oracle beats on earnings, but stock drops on plans to raise another $20 billion
Oracle reported better-than-expected earnings and revenue for the fiscal fourth quarter on Wednesday while also raising its profit forecast for the year. The stock dropped 10% in extended trading as the company plans to raise more money to finance its AI buildout. Revenue increased 21% year over year in the quarter, which ended on May 31, according to a statement. Net income rose to $4.22 billion, or $1.45 per share, from $3.43 billion, or $1.19 per share, a year ago. Adjusted earnings exclude impact of stock-based compensation. The company maintained its previous revenue guidance of $90 billion for the 2027 fiscal year, while lifting its forecast of adjusted earnings per share to $8.05. Analysts were projecting $8.01 per share and $88.9 billion in revenue.
Sen. Warren calls on SEC to delay SpaceX IPO, flagging concerns about valuation and governance
Sen. Elizabeth Warren, D-Mass., called for the Securities and Exchange Commission to delay SpaceX's upcoming initial public offering, citing concerns about the rocket maker's valuation and corporate governance in a letter shared with CNBC. "Given the unprecedented threats to investor protection and market integrity posed by the biggest IPO in history, you must delay any eventual acceleration of the registration statement's effectiveness accordingly," Warren wrote to the market regulator on Tuesday. In the 12-page letter, Warren flagged the potential for "inaccurate or misleading accounting or valuation" around SpaceX's acquisition of Elon Musk-owned xAI, conflicts of interest surrounding Musk's "uniquely unchecked" power as its majority shareholder, and that fast-tracking the company into major stock market indexes would carry "significant risks" for both active and passive investors.
Panasonic to start US data centre battery production by fiscal 2028
Panasonic Holdings said on Monday it plans to start mass production of battery cells for data centre applications at a plant in the U.S. state of Kansas in the financial year 2028, which ends March 2029. The company said it would allocate about 350 billion yen ($2.18 billion) of its previously announced 500-billion-yen investment in AI infrastructure over fiscal 2026-2028 to its Energy unit, which supplies Tesla, and 150 billion yen to its Industry segment. Panasonic Energy also plans to build a third plant in Mexico with mass production scheduled for the fiscal year 2027.
Microsoft limits employee use of Anthropic's Claude Fable 5 over data retention concerns
Microsoft is limiting employees' use of Anthropic's Claude Fable 5 because of the AI startup's new data retention requirements, The Verge reported on Wednesday, citing sources. Anthropic on Tuesday said it is rolling out Claude Fable 5, a public version of its Mythos AI model, with guardrails barring its use in risky areas such as cybersecurity. Claude Fable 5 is the most powerful model Anthropic has made available for wider use, with the company citing its performance in software engineering and analytics. Microsoft has told employees that its legal teams are evaluating changes to Anthropic's data retention requirements, according to the report. The concerns center on customer data and confidential information, and it is not yet clear whether Microsoft's legal teams will clear Claude Fable 5 for internal use, the report said.
