US open: Markets slip as Middle East tensions flare, CPI jumps above 4pc

(Sharecast News) - Wall Street stocks were in the red early on Wednesday after Washington carried out what it described as "selfdefence strikes" against Iran, heightening tensions in the region and threatening progress toward a potential peace deal, and May's consumer price index report saw inflation surpass the 4% threshold for the first time in three years.

As of 1450 BST, the Dow Jones Industrial Average was down 0.40% at 50,667.82, while the S&P 500 shed 0.29% to 7,365.43, and the Nasdaq Composite came out of the gate 0.36% softer at 25,587.16.

The Dow opened 204.29 points lower on Wednesday, more than reversing gains recorded in the previous session.

Stocks headed south after the US launched strikes against Iran in response to the downing of a US Army Apache helicopter a day earlier, according to US Central Command. Donald Trump had accused Iran of shooting down the aircraft as it patrolled over the Strait of Hormuz. Tehran has not claimed responsibility, though officials warned that foreign forces operating near Iranian territory face inherent risks from accidents, human error or crossfire.

Outside of Middle East tensions, market participants were firmly focussed on news that US inflation accelerated in May, according to the Bureau of Labor Statistics, with headline CPI rising 0.5% on the month and 4.2% over the year. The monthly increase eased slightly from April's 0.6% gain, while the annual rate picked up from 3.8% and moved above the 4% threshold for the first time since May 2023. Consensus estimates had annual CPI rising 0.5% on the month and 4.2% year-on-year.

Energy remained the main driver, with the index up 3.9% on the month and accounting for more than 60% of the overall rise. Shelter costs increased 0.3%, while food prices edged 0.2% higher, with modest gains across both food at home and food away from home. Core CPI, which strips out volatile food and energy prices, rose 0.2% in May. Over the year, core CPI was up 2.9%, compared with 2.8% in April, while energy prices surged 23.5% year-on-year.

Elsewhere on the macro front, US mortgage applications rose in the first week of June, according to the Mortgage Bankers Association, with overall volumes increasing by 10.8% week-on-week. The increase followed a 2.5% drop in the prior week and snapped a three-week run of decreases. It was also the highest rise since late February and came despite rising benchmark mortgage rates. Applications to refinance a mortgage, which are typically more sensitive to shortterm interest rate changes, shot up 15.3%, while applications to purchase a home were also higher, up 7.3% on the week.

In the corporate space, Oracle was slated to report its fourth quarter results after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Home Depot Inc. (HD) $319.22 3.75%

Nike Inc. (NKE) $43.39 3.28%

Coca-Cola Co. (KO) $82.48 2.26%

Verizon Communications Inc. (VZ) $46.42 1.44%

Chevron Corp. (CVX) $189.49 1.26%

Procter & Gamble Co. (PG) $149.93 0.85%

McDonald's Corp. (MCD) $282.75 0.61%

Unitedhealth Group Inc. (UNH) $413.70 0.38%

Visa Inc. (V) $322.92 0.38%

Johnson & Johnson (JNJ) $237.99 0.23%

Dow Jones - Fallers

Intel Corp. (INTC) $108.11 -3.96%

Apple Inc. (AAPL) $290.78 -2.89%

Dow Chemical Co. (DOW) $32.90 -2.87%

Salesforce.Com Inc. (CRM) $170.51 -2.52%

Microsoft Corp. (MSFT) $399.84 -2.18%

Cisco Systems Inc. (CSCO) $119.00 -2.04%

Caterpillar Inc. (CAT) $903.74 -1.72%

3M Co. (MMM) $152.15 -1.71%

Amgen Inc. (AMGN) $343.77 -1.68%

International Business Machines Corporation (CDI) (IBM) $271.72 -1.19%

S&P 500 - Risers

Illumina Inc. (ILMN) $163.80 4.95%

Whirlpool Corp. (WHR) $40.65 4.75%

Leggett & Platt Inc. (LEG) $10.26 4.70%

Jacobs Solutions Inc. (J) $124.64 4.57%

Applied Materials Inc. (AMAT) $508.90 4.37%

Zoetis Inc (ZTS) $81.83 4.29%

Kimco Realty Corp. (KIM) $25.25 3.92%

Home Depot Inc. (HD) $319.22 3.75%

Celanese Corp. (CE) $49.99 3.75%

Healthpeak Properties, Inc (DOC) $20.53 3.69%

S&P 500 - Fallers

Ipg Photonics Corp. (IPGP) $103.19 -8.78%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Seagate Technology Plc (STX) $821.25 -6.26%

Micron Technology Inc. (MU) $914.17 -6.07%

QUALCOMM Inc. (QCOM) $202.72 -5.98%

Intuit Inc. (INTU) $286.83 -5.65%

Western Digital Corp. (WDC) $501.38 -4.86%

Skyworks Solutions Inc. (SWKS) $72.00 -4.74%

Broadcom Inc. (AVGO) $380.30 -4.22%

Fortinet Inc. (FTNT) $137.98 -4.16%

Nasdaq 100 - Risers

NetEase Inc. Ads (NTES) $124.19 3.84%

Illumina Inc. (ILMN) $163.04 3.46%

Cintas Corp. (CTAS) $178.71 2.66%

Monster Beverage Corp (MNST) $90.65 2.39%

Biogen Inc (BIIB) $199.05 2.23%

Charter Communications Inc. (CHTR) $133.03 2.08%

Mondelez International Inc. (MDLZ) $63.60 1.89%

Paychex Inc. (PAYX) $99.31 1.87%

O'Reilly Automotive Inc. (ORLY) $90.34 1.85%

Trip.com Group Limited (TCOM) $47.99 1.79%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Micron Technology Inc. (MU) $902.98 -7.09%

Seagate Technology Plc (STX) $813.00 -6.26%

J.B. Hunt Transport Services Inc. (JBHT) $277.83 -5.98%

Western Digital Corp. (WDC) $492.31 -5.41%

Tesla Inc (TSLA) $391.93 -4.95%

Intuit Inc. (INTU) $285.13 -4.78%

Skyworks Solutions Inc. (SWKS) $72.00 -4.74%

Sirius XM Holdings Inc (SIRI) $27.65 -4.58%

Gen Digital Inc. (GEN) $24.30 -4.55%