The Dow Jones Industrial Average fell more than 500 points on Wednesday as renewed US-Iran tensions sent oil higher and split Wall Street. The Nasdaq edged up 0.2% while the S&P 500 slipped, and crude climbed about 5% after President Trump declared the ceasefire "over."
The Dow Jones Industrial Average fell roughly 1%, or more than 500 points on Wednesday, dragging the blue-chip index lower as US-Iran tensions flared again. The split ran through the market: the S&P 500 dropped 0.2% while the Nasdaq Composite managed a 0.2% gain.
Iran strikes push oil higher
The selloff followed a military escalation. American forces carried out a series of strikes against Iran late Tuesday in response to attacks on three commercial vessels in the Strait of Hormuz. Speaking in Ankara before a NATO summit, Trump declared the US-Iran ceasefire finished. According to Yahoo Finance: "As far as I'm concerned, it's just a waste of time dealing with them" — though he later suggested the war would not fully restart.
Energy markets moved fast on the news. Crude prices climbed about 5%, with West Texas Intermediate trading above $74 a barrel and Brent holding near $78 a barrel. The pressure intensified after the Treasury revoked Iran's oil export license, raising supply-disruption concerns. Traders watching how to trade oil had a rare catalyst to work with.
Fed minutes reveal a split committee
The macro backdrop added to the caution. The Fed's June meeting minutes revealed a divided committee, with some officials arguing that an interest-rate hike could be warranted. Policymakers still kept rates steady at the first meeting under new Chairman Kevin Warsh.
The result was a market pulling in two directions at once, with energy strength lifting parts of the tape even as the Dow sank.
Source: Yahoo! Finance Canada
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