The S&P 500 slipped 0.2%, the Nasdaq eased 0.1%, and the Dow Jones Industrial Average fell 0.7% on Wednesday, as escalating conflict in the Persian Gulf pushed energy prices higher and stoked inflation fears. West Texas Intermediate crude futures rose above $87 a barrel after projectile attacks on cargo vessels near the Strait of Hormuz, offsetting the impact of news that the International Energy Agency would undertake a record release of oil reserves.
The geopolitical tensions overshadowed a February consumer price index report that was in line with expectations, showing a 2.4% year-over-year increase and reinforcing the possibility that central banks could delay policy easing. Rising yields weighed on rate- and credit-sensitive equities, while the technology sector found some support from Oracle, which surged 9.2% after posting better-than-expected earnings and raising its outlook.
Clean energy funds were another notable outperformer, climbing to record highs as investors sought alternatives to volatile fossil fuel supplies amid the ongoing regional conflict.
