US President Donald Trump speaks at a press conference during the 2026 NATO summit in Ankara, Turkey, on Wednesday (local time). [EPA]
US President Donald Trump speaks at a press conference during the 2026 NATO summit in Ankara, Turkey, on Wednesday (local time). [EPA]

Wall Street's three major indexes closed mixed Wednesday (local time) as tensions between the United States and Iran escalated anew.

Investor sentiment soured after President Donald Trump declared the truce with Iran in effect over and signaled the possibility of further airstrikes, sending oil prices sharply higher and stoking fears of renewed inflation and additional Federal Reserve rate hikes. Losses narrowed late in the session, however, after Trump said he did not expect a full-scale war.

The Philadelphia Semiconductor Index bucked the broader uncertainty to rise 2.2% — a development that could influence trading in Samsung Electronics and SK hynix, which fell 6% and more than 5%, respectively, on the domestic market Wednesday.

The Dow Jones Industrial Average closed down 576.76 points, or 1.09%, at 52,348.39.

The S&P 500 fell 21.14 points, or 0.28%, to 7,482.71, while the tech-heavy Nasdaq Composite rose 51.96 points, or 0.20%, to 25,870.65.

Stocks fell broadly at the open as armed conflict between the US and Iran resumed. Trump's remarks proved particularly unsettling for markets.

Speaking at the NATO summit in Ankara, Turkey, Trump declared the temporary ceasefire agreement with Iran "over," saying he had no intention of further talks with Iranian leadership and denouncing them in sharp terms.

Markets grew more anxious after Trump later raised the possibility of additional strikes.

The mood shifted in the afternoon, however, when Trump said he did not think war with Iran would "start again." Indexes gradually pared their losses, and the Nasdaq turned positive in the final stretch of trading.

Gains in major technology stocks drove the Nasdaq's rebound. Broadcom surged 4.8% after reports that Apple had expanded a $30 billion semiconductor supply agreement with the chipmaker. Nvidia climbed 3.7% on reports that Chinese authorities would allow domestic AI companies to purchase H200 chips on a limited basis.

On the losing side, Microsoft and Alphabet each fell more than 1%, while Meta Platforms dropped 2%. SpaceX slipped 0.8%, hitting its lowest closing price since its June 12 listing.

Minutes from the June Federal Open Market Committee meeting, released in the afternoon, reinforced concerns about inflation and added to expectations of a rate hike, weighing further on sentiment.

According to the CME FedWatch tool, fed funds futures markets raised the probability of the Fed lifting its benchmark interest rate by at least 25 basis points in July to 30.5%, up from 26.7% on Wednesday.

The odds of a rate hike at the September meeting also rose, to 65.7% from 61.9%.

The IMF cut its global economic growth forecast to 3.0%, citing risks from the Middle East conflict.

Oil prices surged. Brent crude futures for September delivery settled at $78.02 a barrel, up 5.20%, while West Texas Intermediate futures for August delivery rose 4.37% to $73.52 a barrel. Brent hit its highest level since June 19; WTI reached its highest since June 22.

US Treasury yields rose as inflation concerns mounted. The 10-year Treasury yield climbed 2 basis points from Wednesday to 4.57%.

The dollar briefly surged to its highest level since July 1 immediately after Trump's hawkish remarks, then gave back its gains and turned lower in the afternoon.

The dollar index (DXY), which measures the greenback against six major currencies, closed at 101.044 as of 5 p.m., down 0.227% from the previous session.

The won strengthened against the dollar, with the won-dollar rate falling 10.80 won to 1,505.0 won.

Spot gold fell 0.6% from the previous session to $4,081.35 per ounce.


jiyun@heraldcorp.com