Tech stocks were lower late Wednesday afternoon, with the State Street Technology Select Sector SPDR ETF (XLK) down 0.5% and the State Street SPDR S&P Semiconductor ETF (XSD) falling 2.5%.
The Philadelphia Semiconductor index lost 1.7%.
In corporate news, Meta Platforms (META) plans to sell Meta AI chatbot consumer subscriptions for the first time, as the company looks to offset its billions of dollars of investments in AI, Bloomberg reported. Meta shares rose 3.8%.
Healthcare stocks rose late Wednesday afternoon, with the NYSE Healthcare Index up 0.4% and the State Street Health Care Select Sector SPDR ETF (XLV) increasing 0.2%.The iShares Biotechnology ETF (IBB) added 0.6%.In corporate news, BioNTech's (BNTX) cancer-drug pipeline is showing stronger early results and is approaching several important clinical milestones, improving confidence in the company's long-term outlook, UBS Securities said in a report. UBS upgraded its rating on BioNTech stock to buy from neutral and raised its price target to $135 from $117. BioNTech shares rose 1.2%.
Consumer stocks were higher late Wednesday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) rising 1.5% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) adding 1.7%.In corporate news, Tesla (TSLA) and SpaceX (SPCX) may eventually merge after SpaceX's initial public offering in a move that would consolidate Elon Musk's control across his companies, according to early SpaceX investor Peter Diamandis, Bloomberg reported, citing an interview. Tesla shares rose 1.5%.
West Texas Intermediate (WTI) crude oil plunged 5.6% on Wednesday on expectations the United States and Iran are nearing a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock.WTI crude oil for July delivery closed down US$5.21 to settle at US$88.68 per barrel, the lowest since April 20, while July Brent oil was last seen down US$5.30 to US$94.28.The drop comes as United States and Iran continue negotiations to end their war and reopen the crucial waterway that is the chokepoint for the 20% of daily oil supply from Persian Gulf nations that has been closed since the Feb. 28 start to the war.Talks between the two countries are continuing in Qatar and U.S. President Trump has repeatedly said a deal is near. Reuters reported Iranian State TV is saying it has seen a draft of "an initial, unofficial framework" for a peace agreement that sees the withdrawal of U.S. forces in the region while Iran and Oman will jointly managing shipping through the Strait.Though oil prices have retreated from April highs above US$110 per barrel, there is little expectations prices will quickly return to pre-war levels as importers look to rebuild inventories."Even if a deal is reached, market normalization is likely to take months, with ongoing demand for replacement barrels and depleted inventories potentially leading to a higher price floor than the one seen before the war," Saxo Bank noted.