U.S. equities fell on Wednesday after President Donald Trump signaled that negotiations with Iran were taking “too long” and threatened more action.
The Dow Jones Industrial Average fell by 712 points, or 1.4%. The S&P 500 and Nasdaq Composite traded down 1.2% and 1.5%, respectively.
Major averages dropped to their session lows after Trump pledged more Iran attacks, saying that “we’re going to be attacking them very hard.” He wrote early Wednesday that Iran has “taken too long to negotiate a deal that would have been great for them, now they will have to pay the price!!!”
Oil prices rose after Trump’s threats. West Texas Intermediate crude futures climbed 3% to top $91 a barrel.
Tensions in the Middle East ramped up again Tuesday evening, after U.S. forces launched strikes against Iran “in response to [Monday’s] downing of a U.S. Army Apache helicopter,” U.S. Central Command said. Trump had earlier accused Iran of shooting down the helicopter, which he said was patrolling over the Strait of Hormuz.
“The Iran war story is really consequential,” said Jed Ellerbroek, portfolio manager at Argent Capital Management. “Either investors are going to be proven right, that [there’s] nothing to worry about, Trump will take care of it, we’ll get a deal with Iran and the strait will open up, but if not, it feels like oil prices are going to have to go up a lot.”
“[In] this investing environment, it’s impossible to be comfortable,” he added.
Chip stocks came under pressure once again Wednesday. Shares of Micron Technology, Advanced Micro Devices and Broadcom were lower, falling for the fourth day in five. The iShares Semiconductor ETF was trading 3% lower after rolling over on Tuesday. Chip stocks were pummeled at the end of last week, culminating in a 10% decline for the SOXX ETF on Friday. The group then rebounded slightly Monday before the selling resumed Tuesday.
The stocks are coming under pressure ahead of the SpaceX IPO on Friday with some traders believing that investors, especially smaller retail participants, are shedding some of their hot chip stock winners to make room for the largest IPO ever in their portfolios. Others believe the weakness is just profit taking after such a rapid run. The SOXX ETF is still up more than 80% this year.
May’s core consumer price index reading, excluding food and energy prices, was a bit lighter than expected. For the month, core CPI came in at 0.2%, below the 0.3% estimate, according to the Bureau of Labor Statistics. Compared to a year ago, core CPI stood at 2.9%, in line with expectations, but above the Federal Reserve’s 2% inflation target.
The headline annual inflation rate, which includes all prices, climbed above 4% for the first time in three years.
On Tuesday, chip stocks dragged down the S&P 500 and Nasdaq, while the blue-chip Dow Jones Industrial Average finished in the green. Tuesday’s rout was an extension of last week’s pullback, which came after weeks of ferocious buying fueled by enthusiasm for all things tied to artificial intelligence.
— CNBC’s Jeff Cox and Kevin Breuninger contributed reporting.
Coca-Cola, TJX among stocks hitting all-time highs
Coca-Cola Company and TJX Companies were among the stocks hitting all-time highs Wednesday, amid a broader sell-off for the major averages. Shares of Coca-Cola were higher by more than 2%, while shares of TJX climbed nearly 1%, as of afternoon trading.
Applied Materials was another notable name reaching fresh highs, with the stock last higher by 0.5%.
The stocks bucked the trend in the broader market, which was falling as tech came under pressure. The S&P 500 was last lower by around 1%.
— Sarah Min
11 stocks in the S&P 500 trade at new all-time highs
On Wednesday, 22 stocks in the S&P 500 traded at new 52-week highs.
Of these names, 11 tickers reached new all-time highs. Names that hit this milestone included:
- The TJX Companies trading at all-time highs back to IPO in 1987
- Coca-Cola Co trading at all-time high levels back to its IPO in 1919
- Monster Beverage (formerly Hansen Natural) trading at all-time high levels back to its listing on the NASDAQ in 1992
- Globe Life trading at all-time high levels back to when Torchmark Corp was initially formed in 1980
- MetLife trading at all-time high levels back to when it became a publicly traded company in April 2000
- Principal Financial trading at all-time high levels back to its IPO in 2001
- WW Grainger trading at all-time high levels back to when it began trading in 1967
- Johnson Controls trading at all-time high levels back to when it began trading in 1940
- Applied Materials trading at all-time high levels back to its IPO in October 1972
- KLA Corporation trading at all-time highs, back to KLA Instruments’ IPO in 1980
- Linde trading at its all-time highs back to Praxair’s spin-off from Union Carbide in June 1992
On the other hand, six stocks in the index traded at new 52-week lows:
- Global Payments trading at lows not seen since March 2016
- Intuit trading at lows not seen since July 2020
- Trimble trading at lows not seen since August 2024
- Mosaic trading at levels not seen since November 2020
- Constellation Energy trading at lows not seen since May 2025
- NRG Energy trading at lows not seen since May 2025
— Christopher Hayes and Lisa Kailai Han
Major bourses in Frankfurt, Paris and Milan end lower, as Stoxx 600 closes flat
The Stoxx 600 ended Wednesday’s session flat, with the pan-European benchmark reversing course after edging higher in morning trade.
Major bourses in Frankfurt, Paris and Milan all closed the day in negative territory.
Germany’s DAX led losses with a 0.88% slide, as the French CAC 40 fell 0.51%. Italy’s FTSE MIB dipped 0.46%, but in London the FTSE 100 ended day higher, at 0.27%.
Regional sectors were mixed. Mining and metals stocks saw the biggest retreat, sliding 1.16%, which sent German copper mainstay Aurubis tumbling 7.6%.
— Hugh Leask
Freight stocks sell off following Amazon trucking expansion announcement
Shares of several large freight carriers slumped Wednesday after Amazon announced it’s opening up its trucking services to companies beyond its own network.
The e-retailer said it will offer less-than-truckload shipping to all businesses, not just those who ship goods into its warehouses and fulfillment centers, and deliver to any destination in the U.S., as part of its nascent Amazon Supply Chain Services program.
Less-than-truckload refers to a service where companies carry shipments from multiple customers on a single trailer, instead of full truckloads from one customer.
Old Dominion Freight Line‘s stock tumbled more than 6%, while shares of ArcBest sank 4%. Saia and XPO Logistics slid 5% each. Shares of FedEx Freight, which started trading earlier this month after it was spun off by FedEx, fell about 3%. Read more.
— Annie Palmer
Piper initiates an overweight rating for SharkNinja, setting a $150 price target
Piper Sandler initiated SharkNinja with an overweight rating, setting a $150 price target, implying a 27% upside from Monday’s close at $118.28.
The firm expects product launches, international expansion and higher margin direct-to-consumer sales to support annual revenue growth of over 15% and earnings growth above 20% over the next three years.
“While the law of large numbers suggests this historic growth will be tough to maintain going forward, SN has a number of attractive and emerging drivers including DTC sales, beauty category expansion and an impressive advertising reach that should enhance brand awareness,” according to the note.
The beauty and home environment appliances sales category of SharkNinja grew 45% last year, accounting for roughly 13% of sales, up from about 3% in 2022.
— Deena Zaidi
Citigroup shares rise after Trump endorsement
Citigroup shares rose after President Donald Trump praised the bank, in a public endorsement that raised investor confidence in the firm.
“Wow! CITI was ranked Number 1 in topping M&A Advisory Market by Value in Q1. Congratulations to Jane F and ALL of her great people. They’ve worked really hard! BIG comeback for CITI!!!” Trump wrote in a Truth Social post.
Trump and his family reportedly bank with Citigroup, with Eric Trump having set up a trust at the institution to manage his father’s wealth, according to Bloomberg.
Citigroup shares gained 0.1%, outperforming other big banks such as Goldman Sachs and Morgan Stanley, which were down in midday trading. The stock is up more than 15% this year.
— Sarah Min
Stocks fall on Wednesday
The three leading U.S. indexes started Wednesday’s session in the red.
The Dow Jones Industrial Average dropped 263 points, or 0.5%. The S&P 500 declined 0.5%, while the Nasdaq Composite lost 0.6%.
— Sean Conlon
Consumer prices rise 4.2% year over year, but core gained 2.9% annually
Inflation picked up in May, driven by the impact of higher energy prices.
The consumer price index for May logged its biggest gain in three years, rising 4.2% year over year, but that was in-line with expectations. On a seasonally adjusted basis, the index rose 0.5% from the prior month, also in line with Dow Jones estimates.
Stripping out volatile food and energy prices, core CPI rose 0.2% for the month and 2.9% from a year ago. The annual rate was in line with estimates, but the monthly increase was below the 0.3% estimate.
Stock futures remained in negative territory after the report while Treasury yields were flat.
— Christina Cheddar Berk
Super Micro Computer, Chewy among the stocks making moves premarket
Here are some of the names moving before the opening bell:
- Super Micro Computer — The stock dropped 12% after the company announced it plans to raise $7 billion in equity-related deals to help cover the costs of hardware component purchases.
- Cracker Barrel — Shares rose nearly 11% after the Southern country-themed restaurant chain raised its full-year revenue and adjusted EBITDA guidance. Cracker Barrel also fiscal third-quarter earnings and revenue that toped expectations.
- Nike — The footwear and apparel company shed 1%. RBC downgraded the stock to sector perform from outperform, saying Nike’s turnaround is “slower and narrower than we were anticipating.”
Read the full story here.
— Michelle Fox
Iran has ‘taken too long’ to agree to a deal, Trump says
U.S. President Donald Trump said Wednesday that Iran has taken too long to negotiate a peace deal and will now have to “pay the price.”
“Iran’s Military is a complete and total mess,” the president said in a post on Truth Social. “Much of it, like their Navy and Air Force, doesn’t even exist anymore – They have been completely defeated. Iran is all talk and no action.” Read more.
— April Roach
European stocks retreat, reversing early gains on global tech worries
European stocks retreated on Wednesday morning, reversing earlier gains amid the ongoing sell-off in global technology stocks.
Shortly after 10:30 a.m. in London, the pan-European Stoxx 600 was seen trading down 0.3%, with the regional technology index seen down 0.95%.
Names linked to the AI theme in Europe saw declines, with London-listed Raspberry Pi down 11% and German software firm SAP down 3.6%.
Asia-Pacific markets close mostly lower as tech stocks sell-off, Mideast tensions rise
Asia-Pacific markets closed mostly lower Wednesday, with South Korea’s Kospi leading regional losses amid a tech sell-off and Middle East tensions.
Japan’s Nikkei 225 fell 1.89% to 64,179.27, while South Korea’s Kospi slumped 4.52% to 7,730.82.
Hong Kong Hang Seng Index was trading 0.77% lower in its last hour of afternoon trade, while Mainland China’s CSI 300 lost 1.11% to 4,748.59. Australia’s benchmark S&P/ASX 200, bucked the broader trend, dropping 0.57% to 8,653.30
—Justina Lee
SoftBank drops 10% amid broad losses in Asia tech stocks
Asian semiconductor and technology stocks resumed their slide Wednesday, tracking overnight losses on Wall Street after a brief rebound in chipmakers lost steam amid lingering concerns over stretched artificial intelligence-related valuations.
Japan’s Softbank Group plunged 10% amid a broader decline in tech names and after efforts to secure at least $6 billion through a margin loan backed by its OpenAI stake hit a snag, according to Bloomberg News. The Japanese tech investment giant is exploring alternative funding options, though it may revisit the loan at a later date.
Japanese chip equipment makers Advantest and Renesas Electronics dropped 3.8% and 3.4%, respectively.
In South Korea, memory chip major SK Hynix dropped over 8%, while Samsung Electronics fell 7.45%. Battery maker Samsung SDI declined more than 5%, while display panel producer LG Display slid nearly 9%.
Among Taiwanese stocks, Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, fell about 2%, while Apple supplier Hon Hai Precision Industry lost more than 4%.
—Lee Ying Shan
European stocks inch higher amid U.S.-Iran latest
European stocks moved higher on Wednesday, bucking a negative trend set by Asian markets, as major bourses shrugged off a resumption in strikes between the U.S. and Iran overnight.
Shortly after the opening bell, the pan-European Stoxx 600 index was seen up 0.3%. London’s FTSE 100 opened 0.2% higher, while France’s Cac 40 added 0.4% and Germany’s Dax rose 0.2%.
Autos, insurance, and healthcare stocks led gains, while technology stocks and banks lagged the broader index.
— Joseph Wilkins
Starbucks explores options for Japanese business, including stake sale: Bloomberg
Starbucks is exploring options for its business in Japan, including a stake sale, Bloomberg reported Wednesday, citing sources familiar with the matter.
Preliminary talks have been held between Starbucks and investment banks to determine the approach for the company’s Japan business, Bloomberg reported.
Japan is one of the coffee chains largest markets, operating about 2,100 stores.
Starbucks in November last year announced a joint venture with alternative asset manager Boyu to run its China operations.
— Justina Lee
Japan’s Asics to spin off its Onitsuka Tiger sneaker business
Japanese sporting goods maker Asics will spin off its popular sneaker brand Onitsuka Tiger, according to its statement on Wednesday.
The Onitsuka Tiger business will become a part of OT Group, a wholly owned subsidiary of Asics.
Shares of Asics were last trading 0.5% higher.
—Justina Lee
China’s May wholesale inflation hits near 4-year high on AI boom, Iran war
China’s wholesale prices rose at the fastest pace in nearly four years in May.
Prices were driven by surging raw material costs from the Iran war and an artificial intelligence investment boom, while consumer inflation came in below estimates.
The producer price index jumped 3.9% from a year ago, the highest since July 2022, topping economists’ forecast of 3.8%, according to data released by the National Bureau of Statistics on Wednesday.
Core CPI, excluding volatile food and energy prices, grew 1.1% in May from a year earlier, edging down from the 1.2% increase in April. Food prices declined 1.7% from a year earlier.
— Anniek Bao
Japan’s wholesale inflation jumps 6.3% in May on higher energy prices
Japan on Wednesday reported a sharp spike in producer price inflation that topped analysts’ estimates on the back of soaring energy prices.
Wholesale inflation rose 6.3% year on year, government data showed, compared with Reuters-polled analysts estimates of 5.5%.
Producer price inflation rose 0.9% on a month-on-month basis, also exceeding analysts’ estimates of 0.5%.
Energy prices accounted for 0.21% of the rise in inflation, data showed.
Nikkei 225, Japan’s benchmark index, was down over 1%, while yield on 10-year government bond was up 3 basis points to 2.695%. Yen was trading flat at 160.36 against the greenback.
— Vinay Dwivedi
South Korea’s Kospi leads declines, down over 2%, as Asia markets open lower
Asia-Pacific markets opened lower Wednesday as Mideast tensions dent investor sentiment.
Japan’s Nikkei 225 dropped 0.71%, while the Topix slipped 0.30%.
South Korea’s Kospi declined 2.31%, and the small-cap Kosdaq was down 0.67%. Australia’s benchmark S&P/ASX 200 was marginally lower.
Hong Kong Hang Seng index futures were at 24,441, lower than the index’s last close of 24,565.90.
—Justina Lee
Asia markets set to open lower as fresh Middle East tensions test fragile ceasefire
Asia-Pacific markets were set to open broadly lower Wednesday on rising tensions in the Middle East after U.S. forces launched strikes against Iran, putting into spotlight a fragile ceasefire between Washington and Iran.
Japan’s Nikkei 225 was poised to decline, with the Chicago futures contract at 64,210 and its Osaka counterpart last trading at 64,440, compared with the index’s previous close of 65,416.63.
Hong Kong Hang Seng index futures were at 24,441, lower than the index’s last close of 24,565.90.
Futures for Australia’s S&P/ASX 200 last traded at 8,624, while the index closed at 8,604.20 on Tuesday.
The U.S. Central Command said that its had conducted strikes against Iran “in response to yesterday’s downing of a U.S. Army Apache helicopter.” Earlier, President Donald Trump accused Iran of shooting down the helicopter, saying that it was patrolling over the Strait of Hormuz.
—Justina Lee
Cracker Barrel gains 7% in Tuesday’s extended trading session
Shares of Cracker Barrel gained 7% on Tuesday evening, after the Southern country-themed restaurant chain lifted its full-year revenue and adjusted EBITDA guidance.
Cracker Barrel also posted a beat on both the top and bottom lines for its fiscal third quarter.
In its last quarter, the company reported adjusted earnings of 29 cents per share on $797.4 million in revenue. Analysts polled by FactSet had expected a loss of 48 cents per share and revenue of $776.7 million.
— Lisa Kailai Han
U.S. forces launch ‘self-defense strikes’ against Iran
On Tuesday evening, U.S. forces launched “self-defense strikes” against Iran “in response to yesterday’s downing of a U.S. Army Apache helicopter,” U.S. Central Command said.
Centcom added in an X post that these strikes are “a proportional response to unjustified Iranian aggression.”
President Donald Trump had said earlier Tuesday that the U.S. would respond to Iran downing the helicopter, which was patrolling over the Strait of Hormuz. Iran has not directly claimed responsibility for shooting down the helicopter.
The president added in a Truth Social post that the two pilots involved in the attack “are safe and uninjured.”
— Kevin Breuninger, Lisa Kailai Han and Darla Mercado
Stock futures tick lower after U.S. forces launch strikes
Stock futures slipped on Tuesday night, after U.S. forces launched strikes against Iran.
Shortly after 6 p.m. ET, futures tied to all three major averages shed around 0.2%.
— Lisa Kailai Han
