The Nasdaq and S&P 500 closed lower on Wednesday, pressured by technology shares amid ongoing worries over elevated valuations. The Dow Jones Industrial Average finished higher as lower oil prices lifted airline and travel-related stocks. Crude prices dropped to their lowest level since the start of the Iran conflict, with additional tankers expected to exit the Strait of Hormuz. President Donald Trump stated that Iran had informed Washington that no tolls were being imposed. The S&P 500 passenger airlines index advanced. Technology shares declined ahead of Micron Technology’s earnings report after the close. The chipmaker’s stock, which had risen more than 200 percent in 2026, fell during the session. Cerebras Systems dropped after the company projected lower full-year profit margins in its first earnings release following its public debut. OpenAI’s announcement of its own inference chip also weighed on sentiment. Worries over debt-financed spending by large technology firms and expectations of a more hawkish Federal Reserve contributed to a market pullback that erased more than one trillion dollars in value from the Nasdaq 100. According to preliminary figures, the S&P 500 fell 5.86 points, or 0.08 percent, to 7,358.72, while the Nasdaq Composite declined 104.58 points, or 0.41 percent, to 25,482.46. The Dow rose 187.97 points, or 0.36 percent, to 51,854.81. Homebuilder shares gained after Trump canceled a planned signing of bipartisan legislation intended to increase affordable housing supply. Shares of Hovnanian Enterprises, PulteGroup, and Toll Brothers increased. Hertz shares fell after the rental company projected second-quarter earnings near the lower end of its forecast and announced a proposed one-hundred-million-dollar stock offering. Traders increased bets on a second Federal Reserve rate increase by December, according to CME Group’s FedWatch tool. The Personal Consumption Expenditures Price Index, the central bank’s preferred inflation measure, is scheduled for release on Thursday.
