The Dow Jones Industrial Average fell on Wednesday as oil prices and Treasury yields moved higher amid worries the U.S.-Iran conflict could keep lifting inflation.
The 30-stock average pulled back 236 points, or 0.4%. The S&P 500 traded just below the flatline, and the Nasdaq Composite eked out a small gain.
Oil prices rose following the U.S. and Iran launching new strikes. West Texas Intermediate futures rose 2% to around $96 per barrel, while Brent crude gained 2% to around $98 per barrel.
Late Tuesday, the Kuwait army said in a social media post that air defense systems were “intercepting hostile targets.” U.S. Central Command later said that American forces defeated Iranian ballistic missiles and drones, and they also carried out “self-defense strikes” on Qeshm Island “in response to attempted attacks by Iran across the Middle East.”
President Donald Trump also said Iran agreed to not having nuclear weapons, but added “they can change their mind.”
As oil prices gained, U.S. Treasury yields advanced as well, with the 10-year yield last seen approaching 4.5% and the 30-year yield nearing 5%. Yields took a leg higher after the strong ADP report for May.
Shares of U.S. private equity firms were a sore spot of the day, falling after Swiss-based private equity firm Partners Group announced it was capping investor withdrawals from one of its funds. KKR dropped 5%, while Blackstone declined 3%.
The major averages notched new record closes on Tuesday. The S&P 500 topped 7,600 for the first time, while the Dow added more than 200 points.
“The momentum has been incredibly strong. It’s for a lot of good reasons, and a lot of optimism, as well as really strong demand around the AI investment cycles. But still we are moving into a period, sort of moving past earning season, which has been a tremendously positive catalyst for the markets,” Meghan Shue, head of investment strategy at Wilmington Trust, said on CNBC’s “Closing Bell” on Tuesday afternoon. “Now we are left with kind of the summer lull. Trading activity might slow a little bit, and we still have a lot of geopolitical risk on the horizon.”
“I’m not necessarily calling for a sharp reversion in the market, but I think it makes a lot of sense to see it pause here, or even pull back slightly and introduce a little bit more volatility as we move into the summer months,” Shue added.
Strait of Hormuz likely to reopen in June as pressures mount, JPMorgan says
The Strait of Hormuz could reopen as soon as this month as the risk of oil inventory depletion puts pressure on U.S. officials, according to JPMorgan.
“The core assumption underpinning this framework is that the accelerating pace of oil inventory depletion will ultimately force the reopening of the Strait of Hormuz, one way or another, with the team envisioning the Strait reopening in June,” JPMorgan analysts said Wednesday in a note to clients.
The status of the sea lane, which is used for the transport of roughly 20% of global oil exports, has been in flux since the start of the Iran war in late February.
Iran has sought to solidify its control over the waterway as the conflict has raged, deploying naval mines to effectively block ships from traveling through it. On Tuesday, Secretary of State Marco Rubio said Iran had placed mines in “large segments” of the Strait of Hormuz, suggesting the blockage of the passageway is more widespread than previously acknowledged.
— Liz Napolitano
Dow slides at open
The Dow Jones Industrial Average pulled back 236 points, or 0.4%. The S&P 500 traded just below the flatline, and the Nasdaq eked out a small gain.
— Fred Imbert
Shares of Palo Alto Networks turn lower after earnings
Shares of Palo Alto Networks reversed course on Wednesday, falling more than 3% in the premarket after earlier rising as much as 12%.
The reversal comes after the company’s latest quarterly results exceeded analysts’ expectations.
— Sean Conlon and Samantha Subin
Shares of KKR and others fall after Partners Group caps private equity fund withdrawals
Shares in KKR, Blackstone and other sector peers tumbled in premarket trading on Wednesday as fears over private market valuations returned to the spotlight after Switzerland’s Partners Group moved to restrict investor withdrawals from one of its funds. Read more.
— Hugh Leask
Private payroll growth was stronger than expected in May, ADP data shows
Private hiring expanded at a brisk pace in May, providing further indication of a stable labor market, ADP reported Wednesday.
The payrolls processing firm said companies added 122,000 workers for the month, up from 105,000 in April and better than the Dow Jones consensus estimate for 110,000. May marked the strongest month since January 2025. April’s total was revised down by 4,000. Read more.
— Jeff Cox
Blackstone, Palo Alto Networks and GitLab among the stocks making moves before the bell
Check out the companies making the biggest moves premarket:
- Private equity firms — The group fell after Bloomberg News reported Partners Group, a Swiss-based private equity firm, capped withdrawals from one of its private equity funds. Blackstone fell 6%, while KKR tumbled more than 5.5%. Blue Owl Capital was off nearly 4%.
- Palo Alto Networks — The cybersecurity stock fell 2%. Palo Alto posted stronger-than-expected revenue guidance for its current quarter and lifted its full-year revenue guidance. The company also posted fiscal third-quarter adjusted earnings of 85 cents per share on $3 billion in revenue, beating the earnings of 80 cents and $2.94 billion in revenue that analysts had expected, per LSEG.
- GitLab — Shares lost nearly 4% after the software company guided for adjusted earnings per share of 17 cents to 18 cents, while analysts polled by LSEG had penciled in 19 cents per share. GitLab also said that it would reduce its full-time workforce by approximately 14%, or 350 team members, and exit 22 countries. The company also expects to incur between $30 million and $35 million in pretax restructuring charges.
Read the full list here.
— Davis Giangiulio
Macy’s moves higher on strong earnings
Shares of Macy’s rose 2% in premarket trading after the department store reported its strongest first-quarter comparable sales performance in four years.
Macy’s also raised its full-year guidance. It now anticipates 2026 net sales to come in between $21.5 billion and $21.75 billion, versus the LSEG consensus estimate of $21.59 billion, It expects earnings will be between $2 and $2.20 per share , up from a previous range of between $1.90 and $2.10.
The company’s fiscal first-quarter revenue of $4.68 billion topped the $4.61 billion expected from analysts, while its adjusted earnings of 13 cents per share wasn’t immediately comparable to estimates.
— Michelle Fox and Gabrielle Fonrouge
Trump: Iran agrees to not have nuclear weapons, but ‘they can change their mind’
The Iranian regime has agreed not to have nuclear weapons, President Donald Trump told The New York Post’s “Pod Force One” podcast — but he added that Tehran could still “change their mind.”
“I did have to say we have to do something about Iran, because regardless of how well we’re doing [economically] we can’t let them have a nuclear weapon,” he said in the interview, which was published Wednesday. “They’ve already agreed they’re not going to have a nuclear weapon.”
Read more here.
— Chloe Taylor
GameStop jumps after posting earnings
GameStop jumped 9% in the premarket after the video game retailer posted first-quarter results. The company earned an adjusted 30 cents per share, while revenue grew by 14% to $835.3 million. The board also approved a $2 billion share repurchase program.
— Fred Imbert
Asia-Pacific markets look past Mideast worries with Japan’s Nikkei hitting record high
Asia-Pacific markets rose Wednesday, with Japan’s Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.
Japan’s Nikkei 225 ended Wednesday’s trading session 2.50% higher at 68,402.13, while the Topix added 1.83% at 3,996.20.
Mainland China’s CSI 300 rose 0.49% to 4,938.81, while Hong Kong’s Hang Seng was down1.62% in its last hour of trade.
Australia’s S&P/ASX 200 rose 0.70% to 8,785.70. The country reported GDP growth of 2.5% year on year for the first three months this year, missing economists’ expectations of 2.6%. Growth was pressured by weaker household spending, lower government consumption, as well as impact from severe weather disruption to the mining industry.
India’s Nifty 50 fell 0.83%, while the BSE Sensex was down 0.90% as of 3:40 a.m. ET.
South Korea’s markets were closed for a holiday.
— Justina Lee
Japan’s Nikkei hit record high among broad gains other Asia markets amid Middle East concerns
Asia-Pacific markets opened broadly higher Wednesday, with Japan’s Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.
Japan’s Nikkei 225 extended early gains to rise 2.14%, while the Topix added 1.52%.
Mainland China’s CSI 300 was marginally higher, while Hong Kong’s Hang Seng slid 0.98%
Australia’s S&P/ASX 200 rose 0.36% as the country reported GDP growth of 2.5% year on year for the first three months this year, missing economists’ expectations of 2.6%. Growth was pressured by weaker household spending, lower government consumption, as well as impact from severe weather disruption to the mining industry.
South Korea’s markets were closed for a holiday.
— Justina Lee
Seven of the 11 GICS sectors end Tuesday higher
Seven of the 11 GICS sectors rose on Tuesday.
Utilities stocks were the day’s leaders, gaining 1.93%. The cohort was followed by the materials and industrials sectors, which respectively added 1.16% and 1%.
On the other hand, the lagging sector of the day was communication services, down 2.61%. Health care, consumer discretionary and consumer staples also ended the day lower, respectively sliding 0.99%, 0.71% and 0.10%.
— Lisa Kailai Han
Stocks making the biggest moves after the bell: Palo Alto Networks, GitLab and Ulta Beauty
These are the stocks moving the most in extended-hours trading:
- Palo Alto Networks — The cybersecurity stock erased earlier gains and fell almost 3%. Palo Alto posted stronger-than-expected revenue guidance for its current quarter and lifted its full-year revenue guidance. The company also reported fiscal third-quarter adjusted earnings of 85 cents per share on $3 billion in revenue, beating the earnings of 80 cents and $2.94 billion in revenue that analysts had expected, per LSEG.
- GitLab — Shares tumbled 5% after the software company guided for adjusted earnings in its current quarter of 17 cents to 18 cents, while analysts polled by LSEG had penciled in 19 cents. GitLab also said that it would reduce its full-time workforce by approximately 14%, or 350 team members and exit 22 countries. The company also expects to incur between $30 million and $35 million in pretax restructuring charges.
- Ulta Beauty — The beauty stock added 1% after lifting the range for its full-year earnings guidance. Ulta reported first-quarter earnings of $7.74 per share, beating the $6.86 a shareanalysts were expecting, per LSEG. Its $3.16 billion revenue also exceeded the $3.10 billion estimate.
— Lisa Kailai Han
Stock futures are little changed
Stock futures traded near flat on Tuesday night.
Shortly after 6 p.m. ET, futures tied to all three major indexes were trading around the flatline.
— Lisa Kailai Han
