US equities finished mixed on Wednesday as strength in traditional economic sectors contrasted with weakness in chipmakers and AI hyperscalers. The S&P 500 rose 0.2% and the Dow added 220 points, with both indices closing at record highs. Earlier in the session, risk-on sentiment briefly increased after Iran claimed it had drafted a peace agreement that would restore trade through the Persian Gulf within a month of signing; US officials later dismissed the document as entirely fabricated.
Meta and Amazon reversed early declines to finish sharply higher. Defensive names also outperformed, with Eli Lilly climbing 2% and Procter & Gamble jumping nearly 4%, helping lead the sector. By contrast, AI-related stocks gave back part of their recent gains as investors questioned the durability of the rally, dragging the Nasdaq 100 to a 0.2% loss. Nvidia slipped 1%, and Qualcomm sank 6%. Micron, however, advanced 3.5%, extending its 19% surge from the previous session after an upgrade from UBS. In after-hours trading, Salesforce fell 2% following its earnings release.
