US Stock Market Today: S&P 500 and NASDAQ Slip as Investors Assess Rising Oil Prices After Trump Iran Warning

Wall Street moved lower on Wednesday after President Donald Trump said the interim US-Iran accord was ‘over,’ raising concerns that fighting could resume near a key global energy route. The Dow Jones Industrial Average fell about 1.5%, while the S&P 500 lost 0.7% and the NASDAQ Composite declined 0.8% by late morning trading.

The market reaction was firm but not disorderly. Oil prices rose sharply, Treasury yields moved higher, and investors shifted away from travel and consumer-linked shares. Still, gains in chip stocks and energy shares helped limit the wider drop across major indexes.

Stocks Fall, But Losses Stay Contained

US equities opened under pressure after Trump said he had no interest in further talks with Iran and warned of possible additional US strikes. The comments followed renewed attacks tied to the Strait of Hormuz, a waterway central to global oil flows.

Even so, the selloff stayed narrower than a full risk-off move. At 11:30 a.m. ET, the Dow was down 810 points at 52,115. The S&P 500 slipped to 7,431, while the NASDAQ fell to 25,565. Decliners led advancers on both the NYSE and NASDAQ, showing broad caution.

Oil Jumps as Hormuz Risks Return

Oil prices posted the clearest market reaction after Trump’s remarks. Brent and US West Texas Intermediate crude both rose more than 5%, while traders reassessed supply risks from the Gulf region.

The move was not worse as traders had already priced in months of Middle East disruption. Some investors also waited to see whether shipping through the Strait of Hormuz would face a fresh full blockade. Fiona Cincotta of City Index captured this caution, saying, “This was always a very fragile peace process.”

Chip Gains Cushion NASDAQ

Technology stocks offered partial support, mainly through chipmakers. Broadcom rose after Apple said it plans to spend more than $30 billion under a chip-supply agreement with the company. This gain helped soften pressure on the NASDAQ, which has faced recent volatility.

The Philadelphia SE Semiconductor Index also advanced, while energy was one of the few S&P 500 sectors in positive territory. Nine of the 11 main S&P 500 sectors traded lower. Travel shares weakened as higher fuel prices raised cost concerns for airlines and cruise operators.

Investors Watch Fed Minutes

The timing added another layer for markets, with the Federal Reserve set to release minutes from its June policy meeting at 2 p.m. ET. The meeting was the first under Chair Kevin Warsh, who has shifted away from forward guidance and kept rates unchanged at 3.50% to 3.75%.

Higher oil prices brought inflation risk back into focus before the release. Ian Lyngen of BMO Capital Markets said June core inflation figures could draw less attention if crude keeps moving higher in July. He added that the Fed minutes may look “somewhat stale” after the latest Middle East turn.

Doubts Keep the Reaction Measured

Analysts pointed to uncertainty rather than a single clear market path. Matthew Ryan of Ebury said ‘the million-dollar question’ was whether talks had fully broken down or only hit a temporary setback. This doubt helped explain why stocks fell but did not collapse.

Meanwhile, the International Monetary Fund lowered its 2026 global growth forecast to 3.0% and cited war-related energy risks. The update gave investors another reason to watch oil, inflation, and central bank policy closely, while markets waited for clearer signs on Iran, shipping flows, and Fed thinking.

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