US stocks closed modestly lower on Wednesday, weighed down by declines in technology shares. Gains in Meta Platforms and comments from Federal Reserve Chair Kevin Warsh provided limited support. Warsh noted that inflation risks have eased recently and reaffirmed the central bank’s 2% target, stating he would not ease policy despite calls for rate cuts from President Donald Trump.
Oil prices rose sharply at the start of the Iran conflict. Traders trimmed expectations for interest rate increases after Warsh spoke but still project at least one hike from the Federal Reserve this year, according to LSEG data.
Meta Platforms shares advanced following reports that the company plans to build a cloud business selling excess AI computing capacity. Analyst Tim Ghriskey said this development could continue supporting the stock, which has lagged other major technology companies this year.
An index of semiconductor stocks fell sharply. Investors are monitoring US-Iran talks and remain cautious ahead of the long holiday weekend, Ghriskey added.
Preliminary data showed the S&P 500 losing 14.34 points, or 0.19%, to finish at 7,485.02. The Nasdaq Composite dropped 169.56 points, or 0.65%, to 26,044.16. The Dow Jones Industrial Average slipped 3.62 points, or 0.01%, to 52,315.58.
The monthly US jobs report is due Thursday, and markets will be closed Friday for the Fourth of July holiday. Vice President JD Vance said US-Iran discussions were progressing well during indirect technical talks in Qatar about the Strait of Hormuz, adding that Washington would avoid full combat unless necessary. An interim accord was signed last month.
Institute for Supply Management data indicated US manufacturing activity slowed in June but remained solid. The session followed strong second-quarter gains for major indexes, with the S&P 500 and Nasdaq posting their largest quarterly advances since 2020.
Alcoa shares declined after Australia’s South32 agreed to sell most of its aluminum assets to the company.
