The Market Reacts to President Trump's Iran Threats 6/10/26

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**Scott Wapner** (1:00)
I'm Scott Wapner and you're listening to Cnbc's Halftime Report, the podcast, the most profitable hour of the trading day. We record this live weekdays at 12 Eastern. Listen in.

**Frank Holland** (1:16)
Thank you, Sarah and Carl. Welcome to the Halftime Report. I am Frank Holland. And for the judge, Scott Wapner, front and center at this hour, the rotation situation. Stocks are volatile. The tech under pressure once again, as questions remain around the rallies road ahead. The Investment Committee is standing by to break down the set up for your money. Right here at Post 9, we have Joe Terranova, Liz Thomas, Jason Snipe and Steve Weiss. Quick check of the markets before we get the conversation started. As you can see, we are down across the board right now. The Dow falling more than 500 points. This follows the president saying there will be more strikes against Iran, saying that Iran is taking too long to negotiate. We're very close to session lows when it comes to the Dow. The S&P down about three quarters of one percent. The Nasdaq down just over three quarters of one percent. The 10-year, also very notable after the CPI report today, sitting at 4.52.
Joe, I'm going to turn to you. One of the things we're looking at this entire week, or the last week or so, I should say, is the volatility in the market. Some people attribute that to the SpaceX IPO coming up. Do you see some other factors leading to some of the volatility we're seeing? I'm looking at the CHIP ETF, the SMH lower once again. Looking at technology under pressure once again.

**Joe Terranova** (2:21)
So you have a confluence of factors that have contributed to the spike in volatility. And I love that you began with the elevated volatility because I think that's the most important thing for the viewers to understand about the environment currently. But whether it's the rise in oil prices, whether it's the uncomfortable rise in yields, the parabolic nature in which a lot of the AI halo trades and derivative trades, equity names rather, have been trading, they collectively have been the catalyst for this elevated volatility. Now what do you do in an elevated volatility environment? It's important to understand. It's very easy to get tempted directionally in that environment, but you have to understand that when volatility elevates, generally the initial stages of that are void of a defined trend. The volatility is elevating because the market is trying to determine whether it's going to continue on the prevailing bullish trend, or whether we're at a moment where we are at an inflection point, we're rolling over, and a bearish trend is going to evolve. So I think while this process unfolds, you kind of have to sit back. I think this is a moment to maybe say, I don't know. I'm not so sure, ultimately, where this takes us in a bullish or bearish direction. I think you have to look at your positioning and make sure that you're sized correctly if you are long only so you can maintain the ownership of those equity names themselves. But I think this is an environment that you have to make less decisions and kind of sit on your hands a little bit and allow this to play out.

**Frank Holland** (3:58)
All right, so you want to make less decisions. Liz, I want to come over to you. We do have the specter of that SpaceX IPO coming up. A lot of talk about people selling out of technology stocks and chip stocks with the idea that they're going to fund their purchases of SpaceX stock. How big of a factor do you see that being in this market and some of the volatility that we're seeing? It's important to know Oracle after the bell, fractionally higher. That seems to be one of the more sensitive stocks to AI questions and technology questions, still managing to hold on to some very slight gains.