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Update: Nasdaq, S&P 500 Extend Slide on AI-Chip Caution; Oil Sinks

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Update: Nasdaq, S&P 500 Extend Slide on AI-Chip Caution; Oil Sinks

(Updates with market moves at the end of the day.)

The Nasdaq Composite and S&P 500 fell Wednesday for the third straight session amid caution on the AI-chip trade, while oil prices tumbled as supply concerns eased.

The technology-heavy Nasdaq fell 0.4% to 25,476.6, erasing earlier gains, and the S&P 500 shed 0.1% to 7,358.2. The Dow Jones Industrial Average rose 0.4% to 51,850.9. Among sectors, energy posted the biggest drop, while industrials paced the gainers.

Micron Technology (MU) shares fell 0.3% in regular trading Wednesday following a 13% drop in the previous session as part of the tech slump. The stock jumped 15% in after-hours trading after fiscal third-quarter results topped estimates.

KB Home (KBH) shares jumped 17% a day after the homebuilder released second-quarter results. Truist Securities attributed the gain to the company's improving gross margins.

Builders FirstSource (BLDR) shares rose 11%, the top gainer on the S&P 500.

Qualcomm (QCOM) agreed to acquire software infrastructure firm Modular for about $3.92 billion in stock as the semiconductor giant looks to bolster its ability to deliver a more optimized AI compute layer. Qualcomm shares fell 3.3%.

Paychex (PAYX) issued a fiscal 2027 outlook that implies slower growth in both profit and revenue. The human resources software provider's shares dropped 1.7%.

West Texas Intermediate crude oil fell 4.7% to $69.79 a barrel in late trading, and Brent dropped 5.2% to $73.09. Tankers continued to move through the crucial Strait of Hormuz after being stuck due to the US-Iran war.

Citing data analytics company Kpler, Stifel said 39 ships moved through the chokepoint on Monday. "Still well below the typical average of over 100, this is a vast improvement after more than three months of a complete halt of traffic," the brokerage said Wednesday in a report. "Both the US and Iran have signaled broad-based progress toward ending the war. That being said, the situation remains delicate as negotiations continue."

US President Donald Trump, in a social media post, criticized oil companies for "not dropping their prices at the pump commensurate with the sharply lower prices they are paying for oil." Trump said he had instructed the Department of Justice "to immediately start looking into this."

US Treasury yields were lower, with the 10-year rate last seen down 9.5 basis points at 4.41% and the two-year rate falling 4.3 basis points to 4.15%.

In economic news, new-home sales in the US unexpectedly declined last month as prices moved higher, government data showed.

"New home sales were much weaker than expected in May, but we think the pace of sales in May probably marks the bottom of what will be a noisy range over the next few months rather than the start of a more sustained decline," Oxford Economics said in a note. "We expect sales to improve later in the year based on our forecast for mortgage rates to move lower."

Gold was last seen down 3.2% at $4,017.60 per troy ounce, while silver slumped 7% to $57.72 per ounce.

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A moderation in fuel prices helped ease Australia's annual headline inflation in May, although the rate remains above the central bank's target range amid elevated housing costs.Australia's consumer price index rose 4% on year in May, down from the 4.2% rate posted in April, data from the Australian Bureau of Statistics showed on Wednesday. On a monthly basis, the CPI fell 0.1% in seasonally adjusted terms.The annual result is better than the 4.1% forecast from the Commonwealth Bank of Australia and Westpac's expectation of a 4.4% increase.Housing was the largest contributor to annual inflation in May, with a jump of 6.5% as electricity costs surged after the end of government rebate programs. Transport price growth eased to 3.3% in annual terms from a 6.6% rise in the year through April.The annual price increase for goods slowed in May, as did tradables inflation, with both declines reflecting a cooling of automotive fuel price growth to 7.7% in May from 18.6% in April, the ABS said.The latest data follows the Reserve Bank of Australia (RBA) pausing its policy-tightening cycle last week. The bank held its cash rate at 4.35% after three consecutive rate hikes, but left the door open to further increases due to persistently high inflation.The central bank has a 2% to 3% annual inflation target. As of Tuesday, the RBA Rate Tracker tool pegged the odds of another hike to borrowing costs at 28%.

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After WuXi AppTec, Alibaba Sues Pentagon to Contest Chinese Military Company Designation
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After WuXi AppTec, Alibaba Sues Pentagon to Contest Chinese Military Company Designation

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HKG:1211HKG:1810HKG:2359HKG:2498HKG:9866HKG:9888HKG:9988SHA:603259SHE:002594
Update: Nasdaq Posts Sharpest Drop in 2 Weeks as Chip Stocks Slide
US Markets

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Dow JonesNasdaq CompositeS&P 500$IBM$KFY$MRVL$MU$NVDA$ON$SNDK$SPGI