U.S. Stocks Close Mostly Lower Amid Rising Middle East Tensions

The Dow rose 0.1%, or 51.77 points, to finish at 51,231.64 points. In contrast, the S&P 500 fell 0.5%, or 36.41 points, closing at 7,765.36 points. The tech-heavy Nasdaq composite dropped 1.3%, or 345.35 points, to end at 27,193.34 points. The Information Technology Select Sector SPDR (XLK) decreased by 1.8%, while the Energy Select Sector SPDR (XLE) gained 3%. Overall, eight of the eleven sectors of the S&P 500 ended positively. The CBOE Volatility Index (VIX), often referred to as the fear gauge, rose 2.19% to 15.41.

Trading volume was elevated, with a total of 18.81 billion shares exchanging hands, surpassing the 20-session average of 17.74 billion. On the NYSE, there were 110 new highs and 416 new lows, while the Nasdaq recorded 33 new 52-week highs against 319 new lows. In the S&P 500, four stocks reached new 52-week highs, compared to 12 that hit new lows.

AI and semiconductor stocks were particularly affected following a report indicating that OpenAI's annualized revenues were significantly lower than previously projected. This led to declines in shares of major tech firms, with NVIDIA Corporation (NVDA) down 2.9% and Advanced Micro Devices, Inc. (AMD) down 3.9%. Shares of Oracle Corporation (ORCL) fell by 5.5%, despite NVIDIA being ranked #1 (Strong Buy) by Zacks.

On the geopolitical front, tensions in the Middle East heightened, contributing to rising oil prices. President Donald Trump stated he has no plans to negotiate for a quick resolution to the Iran conflict and mentioned potential U.S. military actions in the region. He later clarified that no attacks would occur before the midterm elections next month, which helped ease some price pressures, but oil prices remained elevated. West Texas Intermediate futures rose 3.64% to close at $91.49 per barrel, while Brent crude increased 4.07% to settle at $104.28 per barrel.