U.S. Indexes Rebounded 1% Overlooking Persistent Tensions in Middle East

Barry Adams
11 Jun, 2026
New York City

Stocks in New York staged a rebound after tensions in the Middle East appeared to recede for now. 

The S&P 500 Index increased 0.6%, and the tech-focused Nasdaq Composite advanced nearly 1% as investor sentiment recovered. 

The U.S. and Iran halted their latest wave of strikes as two sides struggled to find a common ground and Iran and Israel threatened additional strikes if needed. 

The fragile peace in the Middle East is threatened as Iran and the U.S. exchanged fire over the two-day period, and Iran targeted U.S. military sites in Jordan, Iraq, and Kuwait. 

Chip stocks rebounded amid a recovery in market sentiment, but caution prevailed in trading in New York ahead of the launch of SpaceX's initial public offering. 

Advanced semiconductor and memory makers faced a heavy sell-off over the last five trading sessions, following a rally in the previous nine-week period. 

Chipmakers are still up between 70% and 85% in the year so far, as investors continue to chase artificial intelligence-linked stocks. 

 

Sharp Rise In Energy Prices Accelerated PPI In May

On the economic front, producer price inflation accelerated in May, according to the U.S. Bureau of Labor Statistics. 

The measure of wholesale inflation accelerated to 6.5% in May from 5.7% in the previous month, driven by a sharp jump in gasoline prices. 

On a monthly basis, producer prices on final demand increased 1.15, matching the downwardly revised rate in April, driven by a 10.7% jump in energy prices and 0.6% increase in food prices. 

Meanwhile, the core rate of inflation, excluding food and energy, rose 0.4% from the previous month and advanced 4.9% from a year ago. 

 

U.S. Movers 

Chewy Inc. dropped 2% to $19.98 after the online pet store operator reported record profit and customer growth in the fiscal first quarter. 

Net sales increased 7.7% to $3.4 billion from $3.1 billion, net income advanced to $94.8 million from $62.4 million, and diluted earnings per share rose to 23 cents from 15 cents a year ago. 

Net sales per active customer increased 2.4% to $597 from $583, auto-ship customer sales as a percentage of net sales rose to 84.4% from 82.2%, and free cash flow jumped 45.4% to $70.8 million from $48.7 million a year ago. 

Active customers in the quarter increased to 3.6% to 21.5 million from 20.8 million in the same period a year ago. 

Oracle Corp. dropped 8.5% to $184.63 after the software company reported strong financial results and announced its plans to raise $20 billion through a secondary offering. 

Revenue in the fiscal fourth quarter increased 21% to $19.2 billion from $15.9 billion, net income available to shareholders advanced to $4.2 billion from $3.4 billion, and diluted earnings per share rose to $1.45 from $1.19 a year ago. 

In the fiscal year 2026, total revenues advanced 17% to $67.4 billion, driven by a 39% rise in cloud services to $34 billion, a 10% gain in the services segment to $5.7 billion, a 5% increase in hardware to $3.1 billion, and a 1% decline in the software segment to $24.5 billion.

The software company said it plans to raise $40 billion in fiscal 2027, including an equity offering of $20 billion. 

Oracle in fiscal 2026 raised $43 billion in debt financing and $5 billion through a secondary equity offering. 

The company estimated fiscal first quarter revenue to rise between 27% and 29%, and cloud revenue is estimated to grow between 57% and 63% in constant currency and rise between 58% and 64% in the U.S. dollar. 

The company also retained its fiscal year revenue guidance of $90 billion and raised its adjusted earnings per share estimate to $8.05, an increase of 18% after adjusting for the one-time transactions of selling the Ampere chip business and Bloom Energy warrants in fiscal year 2026.