The S&P 500 ended lower on Wednesday after the U.S. President said an interim deal aimed at ending the war with Iran was “over,” while Broadcom led gains among recently battered chip stocks. Speaking at a NATO summit in Turkey, the President said he had no interest in further talks with Iran and warned that Washington would likely carry out additional strikes on Wednesday night.
The President’s comments marked the latest setback in the back-and-forth talks that have swung between threats of escalation and hopes for diplomacy, leaving investors wrong-footed by several false starts toward a peace deal.
SpaceX SPCX.O fell 0.8% to $148.38, the satellite and rocket company’s lowest close since its Wall Street debut on June 12. Microsoft MSFT.O and Alphabet GOOGL.Oeach fell more than 1%, while Meta Platforms META.O lost 2%.
Helping keep the Nasdaq in positive territory, Broadcom AVGO.O AVGO.O rallied 4.8% after Apple AAPL.O AAPL.O said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker. Nvidia NVDA.O NVDA.O rose 3.65% after the Information reported that China plans to allow its top AI firms to buy a limited number of the company’s H200 chips.
The S&P 500 declined 0.28% to end the session at 7,482.71 points. The Nasdaq gained 0.20% to 25,870.65 points, while the Dow Jones Industrial Average declined 1.09% to 52,348.39 points. The PHLX chip index .SOX .SOX rose 2.23%. Nine of the 11 S&P 500 sector indexes declined, led lower by industrials .SPLRCI .SPLRCI , down 3.41%, followed by a 2.45% loss in materials .SPLRCM .SPLRCM .
Oil prices jumped following the President’s remarks, with Brent crude futures LCOc1 settling up 5.2%. Treasury yields also rose as the selloff spread to bonds. The latest escalation in the conflict threatened to unsettle the equities rally that has carried the benchmark S&P 500 up about 9% so far this year, despite sharp declines after the Mideast war started. A renewed jump in oil prices could revive inflation concerns and further complicate the Federal Reserve’s path.
Energy price-sensitive travel stocks fell as higher oil prices stoked concerns over fuel costs and demand. United Airlines UAL.O UAL.O and Delta Air Lines DAL.N DAL.N both lost more than 1%.
Cruise operators also slipped, with Carnival CCL.N CCL.N down 3.9% and Norwegian Cruise Line NCLH.N NCLH.N losing 1.9%.
The International Monetary Fund on Wednesday once again lowered its 2026 global growth forecast to 3%, warning of ongoing risks posed by the war in the Middle East. Inflation worries mounted at the U.S. central bank’s meeting last month, as officials followed Federal Reserve Chairman Kevin Warsh’s lead to a more stripped-down policy statement, minutes of the session showed on Wednesday. Traders project a likely rate hike by the Fed’s December meeting, according to CME’s Fedwatch.
Declining stocks outnumbered rising ones within the S&P 500 .AD.SPX .AD.SPX by a 3.5-to-one ratio. Volume on U.S. exchanges was relatively light, with 17.8 billion shares traded, compared to an average of 23.0 billion shares over the previous 20 sessions.
Reporting by Ragini Mathur and Avinash P in Bengaluru, and by Noel Randewich in San Francisco; Additional reporting by Chuck Mikolajczak in New York; Editing by Pooja Desai and Shinjini Ganguli and David Gregorio.
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