Wall Street dips as tech declines, Middle East tensions mount

Wall Street’s major indexes declined Wednesday as technology stocks extended losses, driven by fears of tighter monetary policy and high valuations in the sector. The Nasdaq Composite fell 0.57% to 25,531.04, the S&P 500 lost 0.45% to 7,353.21, and the Dow Jones Industrial Average dropped 0.56% to 50,586.75. Tech-focused stocks like Nvidia, Broadcom, and Micron Technology fell between 1% and 3.8%, while the S&P 500 tech index declined 1.1%. Super Micro Computer’s shares tumbled 14.2% after the company announced plans to raise $7 billion through equity and equity-linked financing to support AI server demand. The selloff in tech shares benefited lagging sectors like healthcare, real estate, and consumer staples, though energy shares led gains as oil prices rose over 1%. Investor volatility surged amid renewed U.S.-Iran tensions, with U.S. President Donald Trump warning Iran it would 'have to pay the price' for delays in negotiations, while Tehran reassessed diplomatic engagement. The CBOE Volatility Index climbed to 20.65, its highest since April 7. Meanwhile, a 4.2% year-over-year increase in U.S. consumer prices—driven partly by rising energy costs—reinforced expectations that the Federal Reserve may hold rates steady but could hike later this year. The upcoming $1.75 trillion SpaceX listing, targeting a $75 billion valuation, also weighed on markets as concerns grew over excessive optimism in the tech sector. Trucking stocks XPO, J.B. Hunt, and Old Dominion fell 2.5% to 6.2% after Amazon expanded its freight services, pushing the industrials index down 1%. Declining stocks outnumbered advancers by a 1.17-to-1 ratio on the NYSE and 1.05-to-1 on the Nasdaq, with the Nasdaq recording 35 new highs and 71 new lows.