US stocks extended losses on Wednesday, with the S&P 500 down 1.1%, the Nasdaq off 1.3%, and the Dow Jones dropping 660 points. Sentiment remained fragile as renewed tensions in the Middle East pushed oil prices higher. President Trump reiterated the threat of a forceful response against Iran, saying Tehran had taken too long to negotiate a deal.
Technology and semiconductor shares faced renewed selling pressure amid ongoing concerns that AI-related valuations remain stretched, alongside growing investor caution ahead of SpaceX’s highly anticipated IPO on Friday. Among notable decliners, Nvidia fell 2.9%, Broadcom dropped 3.7%, AMD lost 4.5%, and Micron Technology slid 4.1%, while Tesla retreated 3.4%. Industrial stocks were also dragged lower by broad-based selling.
On the economic front, the latest CPI report showed that US annual inflation accelerated to 4.2% in May. However, core inflation rose a softer-than-expected 0.2% on a monthly basis.
