US sharemarkets finished mixed on Wednesday as renewed tensions in the Middle East lifted oil prices and weighed on broader market sentiment, while semiconductor stocks staged a partial recovery.
The Dow Jones Industrial Average fell 576.76 points, or 1.09%, to 52,348.39. The S&P 500 slipped 0.28% to 7,482.71, while the Nasdaq Composite edged 0.2% higher to 25,870.65.
Energy stocks outperformed as higher crude prices boosted the sector. Marathon Petroleum rose 5%, while ConocoPhillips and Chevron also gained.
Semiconductor stocks rebounded after recent weakness, with the VanEck Semiconductor ETF rising about 2%. Nvidia climbed after China approved limited purchases of its H200 AI chips, while Apple and Broadcom also advanced following further details of their chip partnership.
Consumer-facing stocks weakened as investors assessed the impact of higher energy prices. Home Depot, McDonald’s and Booking Holdings all finished lower.
Oil prices jumped after President Donald Trump declared the ceasefire with Iran was effectively over and warned of further military action following renewed attacks on commercial shipping in the Strait of Hormuz.
Brent crude rose 5.43% to settle at US$78.19 a barrel, while West Texas Intermediate gained 4.37% to US$73.52. Prices extended gains after the close following reports of additional US strikes against Iranian targets.
Investors also reviewed minutes from the Federal Reserve’s June meeting, which showed policymakers remain divided over the outlook for interest rates, with views split between holding rates near current levels and tightening policy further if inflation remains elevated.
Australian Market Outlook
Australian shares are expected to open lower after higher oil prices and renewed Middle East tensions weighed on global risk sentiment.
S&P/ASX 200 futures were down 49 points, or 0.6%, to 8,706.
Locally, investors will be watching China’s latest producer and consumer inflation data, due at 11.30am AEST.
