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Update: Wall Street Falls Intraday as Trump Threatens to Hit Iran Again

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Update: Wall Street Falls Intraday as Trump Threatens to Hit Iran Again

(Updates with latest market prices and developments.)

US stocks were lower intraday after President Donald Trump threatened additional attacks on Iran, sending oil prices sharply higher.

The Dow Jones Industrial Average was down 1.2% at 52,311.4 after midday Wednesday, while the S&P 500 shed 0.4% to 7,473.7. The Nasdaq Composite edged down 0.1% to 25,784.6. Barring energy and technology, all sectors were in the red led by materials.

West Texas Intermediate crude oil was up 5.9% at $74.59 per barrel intraday, while Brent jumped 6.5% to $78.99.

During a North Atlantic Treaty Organization summit in Turkey on Wednesday, Trump said the memorandum of understanding signed with Iran last month to end the war in the Middle East was "over."

The US struck Iran on Tuesday after Tehran attacked three tankers that crossed the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps hit US military targets across Bahrain and Kuwait in retaliation to Washington's attacks, CNN reported.

Trump warned of more attacks on Iran.

"We hit them very hard last night," Trump said in Turkey. "We'll probably hit them hard again tonight."

"The escalation threatens fragile negotiations aimed at securing a permanent peace, with both sides accusing the other of violating the ceasefire," Saxo Bank said in a report Wednesday. "Brent has moved back above $76, potentially triggering further short covering among hedge funds."

US Treasury yields were higher intraday, with the two-year rate increasing 6.7 basis points to 4.23% and the 10-year rate adding 5.8 basis points to 4.59%.

The Federal Reserve is scheduled to publish minutes of its June policy meeting at 2 pm ET, to be assessed for fresh insights on the central bank's monetary policy. At the meeting, policymakers kept their benchmark lending rate steady for a fourth consecutive time.

The International Monetary Fund lowered global economic growth expectations for 2026 as the impact of the Middle East war will likely counter a boost from rising artificial intelligence adoption.

In company news, Apple (AAPL) said Wednesday that Broadcom (AVGO) will produce chips to be used in the iPhone maker' products in a deal likely worth more than $30 billion. Shares of Apple were up 0.5%, among the biggest gainers on the Dow, while Broadcom advanced 5.9%, the second-best performer on the S&P 500.

Moderna (MRNA) slumped 6.2%, the worst performer on the S&P 500.

Major US biopharmaceutical companies' performance in the second half of the year is likely to be driven largely by fundamentals as the focus shifts away from economic factors, Morgan Stanley said in a note.

Gold shed 2.5% to $4,066.8 per troy ounce, while silver lost 5% to $58.26 per ounce.

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