US stocks closed mixed on Wednesday as the S&P 500 fell 0.3% and the Dow Jones Industrial Average dropped 1%, recording its worst day since June 10, while the Nasdaq 100 rose 0.3%. Oil prices surged after President Trump threatened further military action against Iran, stating 'we're going to hit them hard tonight' following US airstrikes on Tuesday. The escalation followed Iran's bombing of three commercial vessels in the Strait of Hormuz, reigniting inflation concerns among investors as Brent crude futures settled up 5.43% at $78.19 per barrel.
US Stock Indexes Record Mixed Performance on Wednesday
The S&P 500 ended 0.3% lower at 7,482.71, while the Nasdaq 100 rose 0.3% to close at 29,252.56. The Dow Jones Industrial Average fell 1% to 52,348.39. The Russell 2000 dropped 1% for the second straight session.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) fell 0.5% and Invesco QQQ Trust (QQQ) ended Wednesday around 0.1% higher, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) lost 1.2%. The VanEck Semiconductor ETF (SMH) added 1.5%, amid gains in chipmaker stocks including Broadcom (AVGO) and Micron Tech (MU). The Philadelphia Semiconductor Index (SOX) rose nearly 2.2%.
Retail sentiment on Stocktwits for SPY, QQQ and DIA was between 'extremely bullish' and 'bullish' zones with 'normal' to 'high' message volumes.
Oil Prices Surge Following Trump Iran Threat
International Brent crude futures (Co1) settled up 5.43% at $78.19 per barrel. West Texas Intermediate futures (CL1) popped 4.37% to close at $73.52 after President Trump on Wednesday threatened to attack Iran again, saying that 'we're going to hit them hard tonight.'
The United States launched a series of powerful retaliatory airstrikes against military infrastructure in southern Iran on Tuesday, in response to Iran's bombing of three commercial vessels traveling in the Strait of Hormuz. President Trump said in a post on Truth Social after market close on Wednesday that 'it will get much worse' if Iran continues to bomb ships.
The political turmoil has rekindled inflation fears among investors, raising bets for a rate hike considering elevated oil prices. 'Markets weren't initially taking the re-escalation in US-Iran tensions too seriously earlier this week,' said Fawad Razaqzada at Forex.com to Bloomberg in an interview. 'But today, that seems to have changed.'
Tesla, Nvidia, Apple Among Stocks in Focus
Tesla (TSLA) is working on voice-based improvements to its Full Self-Driving (FSD) driver assistance software following a detailed user suggestion.
Bloom Energy (BE) faced scrutiny as short-seller Hunterbrook Capital published a detailed investigation challenging the company's claims of supply chain independence.
Top Wall Street trading desks in JP Morgan, UBS and Goldman Sachs see no panic in AI or chipmaker stocks, according to reports on Nvidia (NVDA).
Apple (AAPL) signed an agreement that includes a $1.5 billion investment to upgrade and expand Broadcom's (AVGO) manufacturing facility in Fort Collins, Colorado as a part of its new chip supply deal with AVGO.
Warner Bros Discovery (WBD) unveiled a major restructuring of its advertising technology stack, utilizing autonomous artificial intelligence from Amazon Web Services.
FAQ
What caused the Dow to fall 1% on Wednesday?
The Dow Jones Industrial Average fell 1% on Wednesday, recording its worst day since June 10, driven by rising oil prices and geopolitical tensions after President Trump threatened further military action against Iran following US airstrikes on Tuesday.
Why did oil prices surge on Wednesday?
Brent crude futures settled up 5.43% at $78.19 per barrel and West Texas Intermediate futures rose 4.37% to $73.52 after President Trump stated 'we're going to hit them hard tonight' in response to Iran's bombing of three commercial vessels in the Strait of Hormuz, escalating US-Iran tensions and reigniting inflation concerns among investors.
Which stock indexes rose on Wednesday despite the Dow's decline?
The Nasdaq 100 rose 0.3% to close at 29,252.56, and the Philadelphia Semiconductor Index (SOX) rose nearly 2.2%, driven by gains in chipmaker stocks including Broadcom and Micron Tech, while the VanEck Semiconductor ETF (SMH) added 1.5%.
