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US stocks traded mixed on Wednesday as the Dow Jones Industrial Average reached a fresh all-time high, while the S&P 500 and NASDAQ Composite eased from record levels. Oil prices fell sharply after reports of possible progress toward a US-Iran peace deal. However, the White House denied Iran’s account and called it a “complete fabrication.”
The Dow rose more than 200 points, supported by gains in consumer and retail stocks. Procter & Gamble advanced more than 3%, while Home Depot climbed over 2%, helping the 30-stock index outperform the broader market.
Meanwhile, the S&P 500 edged lower after setting a record close on Tuesday. The NASDAQ Composite also slipped as chip and software shares weakened. Small-cap stocks held firm, with the Russell 2000 touching another all-time high.
Abercrombie & Fitch gained nearly 13% after stronger first-quarter earnings. Dycom Industries surged about 30% after lifting its full-year contract revenue outlook.
Crude oil prices fell after Iranian state TV said Tehran had seen an unofficial draft framework for a deal with Washington. The reported plan would allow Iran to restore commercial traffic through the Strait of Hormuz to pre-war levels within one month.
US crude dropped more than 3% and traded below $91 a barrel, while Brent crude also declined. The move eased concerns over tighter energy supplies and inflation pressure.
However, the White House rejected the report, and no formal agreement had been confirmed. Investors also watched whether the ceasefire between the US and Iran would hold.
Oliver Pursche, senior vice president at Wealthspire Advisors, said, “Regarding news reports that Iran may reopen the strait in a month, I’m not sure that’s something anybody’s going to get excited over.”
Cybersecurity shares came under pressure after Zscaler issued weaker revenue guidance for the current quarter. The stock dropped more than 30%, making it one of the day’s biggest losers among major software names.
Palo Alto Networks fell more than 3%, while CrowdStrike lost about 5%. The Global X Cybersecurity ETF also declined more than 5%, showing broader weakness across the group.
Chip stocks also lost momentum after Tuesday’s rally. Micron traded near flat after surging 19% in the prior session and briefly crossing $1 trillion in market value for the first time. The rally followed a UBS report tied to long-term memory demand from artificial intelligence.
Furthermore, Marvell Technology reversed early gains ahead of its earnings report. The iShares Semiconductor ETF slipped after a strong Tuesday session, while Nvidia also moved lower.
Wall Street strategists offered different views on the S&P 500 outlook. Citi’s Drew Pettit said higher Treasury yields, rising inflation expectations, and a flatter yield curve could limit further gains in valuation multiples.
He said, “All of that doesn’t set you up for a higher sustainable multiple at this point.” Pettit’s 7,700 year-end target for the S&P 500 points to modest upside from current levels.
Goldman Sachs raised its year-end S&P 500 target to 8,000 from 7,600, citing stronger earnings growth. The firm also noted that geopolitical risks remain part of the market backdrop.
Meanwhile, Brian Jacobsen, chief economic strategist at Annex Wealth Management, said, “Combine the reports of the memorandum of understanding with market momentum and you have the makings for a blow-off top, but it can take a long time for the pressure to build.”
Treasury yields eased as investors assessed the latest Middle East headlines. The 10-year Treasury yield slipped to around 4.47%, while the 2-year yield also moved lower.
Gold prices fell to a two-month low as demand for safe-haven assets cooled. Bitcoin also declined, trading below its overnight highs near $76,000. The dollar held mostly steady, while the yen weakened against the greenback.
In Canada, the resource-heavy TSX edged lower as falling oil prices weighed on energy stocks. Financial shares also slipped despite stronger results from Bank of Montreal, Bank of Nova Scotia, and National Bank of Canada.
Also Read: Gold Price Today: MCX Gold Rose Amid Weaker US Dollar and Decline in Oil Prices
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