Stock Market Today: Markets Retreat as Middle East Tensions Overshadow Tame Inflation Data

Major Indexes Pull Back After Three-Day Rally

Wall Street’s major indexes retreated on Wednesday, June 11, 2025, as geopolitical concerns in the Middle East overshadowed positive inflation data. The S&P 500 fell 0.25% to 6,023.72, while the Nasdaq Composite dropped 0.47% to 19,621.46. The Dow Jones Industrial Average managed to eke out a minimal gain of 0.01% to close at 42,872.22.

Today’s market recap shows investors taking profits after a strong three-day rally that had pushed the S&P 500 and Nasdaq to their highest levels since February. The benchmark S&P 500 remains less than 2% away from its all-time closing high, despite today’s pullback.

Inflation Data Calms Tariff Concerns

Wednesday’s market action was initially positive following the release of May’s Consumer Price Index (CPI) data. The report showed inflation increased only marginally in May, with the annual headline inflation rate coming in at 2.4%, lower than economists’ expectations of 2.5%.

“There’s still concern about Trump’s tariffs being inflationary, but this report was better than expected and it fuels hope that the Federal Reserve will be able to step in with rate cuts later on this year,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

Traders now project a 70% chance that the Federal Reserve will cut interest rates by its September policy meeting, according to the CME Group’s FedWatch tool.

Middle East Tensions Spook Markets

The market’s early gains evaporated in the afternoon following reports that the United States is preparing a partial evacuation of its Iraqi embassy due to heightened security risks in the region. A senior Iranian official said earlier that Tehran will strike U.S. bases in the region if nuclear negotiations fail and conflict arises with the United States.

This geopolitical uncertainty prompted investors to take a more cautious stance in today’s stock market live trading session, with many rotating into safer assets.

Tech Giants Weigh on Markets

Amazon (AMZN) and Nvidia (NVDA) declined following recent gains, contributing significantly to the S&P 500’s retreat. Other technology stocks also faced selling pressure as investors reassessed valuations after the sector’s strong performance in recent weeks.

Tesla (TSLA) was a bright spot, rising nearly 3% in today’s markets today session. The electric vehicle maker appears to be recovering from recent volatility caused by public disagreements between CEO Elon Musk and former President Donald Trump over economic policies.

U.S.-China Trade Deal Progress

President Trump announced that the U.S. deal with China was completed, with Beijing agreeing to supply magnets and rare earth minerals. This follows yesterday’s announcement that officials from Washington and Beijing had agreed on a framework to put their tariff truce back on track.

According to a White House official, the agreement allows the U.S. to charge a 55% tariff on imported Chinese goods, including a 10% baseline “reciprocal” tariff, a 20% tariff for fentanyl trafficking, and a 25% tariff for other issues.

“The worst-case scenario is probably behind us. There’s a little bit of face-saving for both sides,” said John Praveen, managing director at Paleo Leon in Princeton, New Jersey.

After-Hours Earnings in Focus

After today’s market close, Oracle (ORCL) is scheduled to release its quarterly earnings report, with analysts expecting a move of approximately 7.75% in either direction based on options pricing. Oxford Industries (OXM), the parent company of Tommy Bahama and Lilly Pulitzer, is also reporting after the bell, with an expected move of around 9.59%.

Earlier today, Chewy (CHWY) reported before the market opened, with investors closely watching the online pet retailer’s performance amid changing consumer spending patterns.

Looking Ahead: Tomorrow’s Market Events

In Thursday’s todays stock market recap, investors will be watching several key economic reports. The Producer Price Index (PPI) for May will be released at 8:30 AM Eastern Time, providing further insights into inflation trends. Economists expect the year-over-year PPI to show a 2.4% increase.

Weekly jobless claims data will also be published tomorrow morning, offering the latest snapshot of the labor market’s health.

In the United Kingdom, several important economic indicators will be released, including GDP data, industrial production figures, and trade balance information, which could impact global market news today and tomorrow.

Market Outlook

Despite today’s pullback, the overall market recap remains positive, with major indexes trading near multi-month highs. Investors continue to bet that the United States will reach trade agreements that reduce steep trade barriers, which has been a key driver of the recent rally.

However, geopolitical tensions in the Middle East and ongoing concerns about the inflationary impact of tariffs could introduce volatility in the coming days. Traders will be closely monitoring tomorrow’s PPI data and upcoming corporate earnings for further direction.

As we move deeper into June, the stock market today continues to navigate a complex landscape of economic data, geopolitical developments, and corporate performance, all while maintaining a relatively strong position compared to earlier this year.