Wall St falls as Trump's Iran remarks weigh on markets
Wall St falls as Trump's Iran remarks weigh on markets
By Ragini Mathur and Avinash P Wed, July 8, 2026 at 2:33 PM UTC
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By Ragini Mathur and Avinash P
July 8 (Reuters) - Wall Street's main indexes fell on Wednesday after President Donald Trump said an interim deal aimed at ending the war with Iran was "over," while gains in Broadcom gave respite to the recently beaten-down chip stocks.
Speaking at the NATO summit, Trump said he had no interest in engaging further with Iran. Adding to tensions, he warned Iran that Washington will likely engage in additional strikes on Wednesday night.
Trump's remarks marked the latest turn in a conflict where rhetoric from the U.S. and Iran has repeatedly swung between military escalation and diplomacy. Investors have been wrong-footed several times by false dawns - when hopes for a lasting peace deal rose, only to fade without resolution.
"The million-dollar question is whether this marks a complete breakdown in negotiations and a return to hostilities, or merely a temporary setback," said Matthew Ryan, head of market strategy at Ebury.
Broadcom gained 3% after Apple said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker.
The chip stocks gained on Wednesday after recent volatility, and helped cap losses on the technology-heavy Nasdaq.
The broader Philadelphia SE Semiconductor index rose 1.4%.
Oil prices extended gains on Wednesday following Trump's remarks, with Brent crude futures and U.S. West Texas Intermediate crude futures both rising more than 5%.
Nine of the 11 sectors on the benchmark S&P 500 were trading lower, except for the energy index and information technology.
Energy price-sensitive travel stocks fell as higher oil prices stoked concerns over fuel costs and demand.
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United Airlines dropped 3.2%, Southwest Airlines lost 1.1% and Delta Air Lines fell 1.9%.
Cruise operators also slipped, with Carnival down 3%, and Norwegian Cruise Line fell 1.8%.
At 10:10 a.m. ET, the Dow Jones Industrial Average fell 514.42 points, or 0.97%, to 52,410.73, the S&P 500 lost 34.32 points, or 0.46%, to 7,469.53 and the Nasdaq Composite lost 78.12 points, or 0.31%, to 25,739.43.
The latest escalation threatened to unsettle the equities rally that has carried the benchmark S&P 500 up about 10% so far this year, despite sharp declines earlier in 2026 due to the Iran conflict. A renewed jump in oil prices could revive inflation concerns and further complicate the Federal Reserve's path.
The CBOE Volatility Index, Wall Street's fear gauge, hit an over one-week high earlier in the day. It was last up 0.99 points at 17.12.
Meanwhile, the International Monetary Fund on Wednesday once again lowered its 2026 global growth forecast to 3.0%, warning of ongoing risks posed by the war in the Middle East.
The Fed's June policy meeting minutes are due later in the session. The readout could offer better clues on how policymakers are assessing inflation risks and economic growth.
"In the past… you tended to have less of a market-moving event with the minutes. I think this may be different," said Art Hogan, chief market strategist at B. Riley Wealth.
According to CME's FedWatch tool, markets are currently pricing in at least one rate hike by the end of 2026.
Declining issues outnumbered advancers by a 2.6-to-1 ratio on the NYSE, and by a 2.03-to-1 ratio on the Nasdaq. There were 19 new highs and 43 new lows on the NYSE.
The S&P 500 and the Nasdaq Composite posted no new 52-week highs and no new lows.
(Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Pooja Desai and Shinjini Ganguli)
Source: “AOL Money”
