What’s likely to move markets in the next trading session on June 11?

Indian markets on Thursday will closely monitor geopolitical tensions after US President Donald Trump warned Iran over missile activity. Investor focus will also remain on US inflation data amid recent energy-led price pressures.

On Wall Street, weakness in technology and AI-linked stocks continue to remain in focus following recent declines. In Europe, expectations of a European Central Bank rate hike have increased after higher-than-expected eurozone inflation data.

US-Iran War: US President Donald Trump said on Wednesday that Iran is “taking too long to negotiate a deal” and warned that “now they will have to pay the price,” without specifying what measures could follow. The remarks came after US airstrikes earlier in the day targeted Iran, following Trump’s accusation that Tehran was responsible for the crash of an American attack helicopter. Iran responded by firing missiles toward multiple countries in the region, further escalating tensions.

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US Markets: Technology stocks extended losses on Wednesday, keeping pressure on Wall Street and putting the S&P 500 on course for its first back-to-back decline in three weeks. The benchmark index slipped 0.6% in early trade. The Dow Jones Industrial Average fell 314 points, or 0.6%, at 9:35 a.m. Eastern time, while the Nasdaq Composite declined 0.8%.

Selling pressure was concentrated in artificial intelligence-linked stocks, which have driven much of the recent market gains but are now weighing on indices after a sharp reversal last week. These stocks had previously powered markets to record highs, but have since turned lower amid concerns that valuations have risen too quickly in a short span.

US Inflation: The inflation accelerated in May to the fastest pace in more than three years as the Iran war pushed up energy prices, outstripping Americans’ pay gains. The consumer price index climbed 0.5% from April and 4.2% from a year earlier, the most since early 2023, according to Bureau of Labour Statistics data out on Wednesday. An underlying gauge of inflation that excludes food and energy, however, rose a less-than-expected 0.2% from the prior month.

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ECB Policy Decision: An interest rate hike now looks the most likely outcome when the European Central Bank meets tomorrow, as markets, economists and traders expect action after eurozone inflation picked up in May. Headline euro zone inflation rose to 3.2% in April as energy prices soared 10.9% year-on-year. The euro zone is a major energy importer, and the bloc is particularly vulnerable to the surge in oil prices sparked by the Iran war.

Shareholder lawsuit hearing against Elon Musk regarding Twitter: Tomorrow, Elon Musk and the Securities and Exchange Commission will appear before a federal judge in Washington to argue in support of their $1.5 million settlement over Musk's purchase of Twitter.

11th Governing Council meeting of NITI Aayog: Prime Minister Narendra Modi will chair the 11th Governing Council meeting of NITI Aayog on Thursday to deliberate on the approach to realise the government’s vision of inclusive human development for Viksit Bharat @2047 and translate it into concrete, measurable outcomes for every citizen across the country.