US equity indexes traded mixed in midday trading on Wednesday as investors weighed President Donald Trump's attempts to downplay the possibility of an extended war in Iran.
The Nasdaq Composite advanced 0.8% to 23,836.9, and the S&P 500 rose 0.3% to 6,990.45. The Dow Jones Industrial Average, however, declined 0.4% to 48,346.9. S&P traded within a hair's breadth of its all-time high of 7,002.28.
Technology, consumer discretionary, communication services, and financials were the gainers. Industrials and materials led the decliners.
Trump said the war with Iran was close to over, telling the world to brace for an "amazing two days," as the army chief of mediator Pakistan arrived in Tehran in a bid to prevent a renewed conflict, Reuters reported. Pakistan's military confirmed Field Marshal Asim Munir had arrived in Tehran, the news report said. A senior Iranian source told Reuters that Munir, who had mediated the last round of talks, was heading to Iran "to narrow gaps" between the two sides.
Meanwhile, Iran's military has threatened shipping in the Red Sea if the US continues its blockade of Iranian ports, after US Central Command said the blockade has "completely halted" Tehran's economic sea trade, CNN reported.
West Texas Intermediate crude oil futures rose 0.6% to $91.86, and Brent crude futures climbed 0.9% to $95.69, off their respective session highs.
"The bottom line is that despite the market's rally since last week, the current ceasefire remains fragile," Thierry Wizman, global foreign-exchange and rates strategist at Macquarie Group, said in a note. "It is currently not letting the oil flow anyway. And if agreement is not reached on the nuclear issue, hostilities may restart, including in the Red Sea."
Most US Treasury yields rose, with the 10-year up 2.7 basis points to 4.28% and the two-year higher by 1.9 basis points to 3.77% as elevated crude oil futures risked firing up the inflation rate.
In precious metals, gold futures fell 0.5%% to $4,826.60 and silver futures declined 0.2% to $79.42.
In company news, Morgan Stanley (MS) posted stronger-than-expected Q1 results as sharp gains in investment banking and trading activity helped boost revenue to a record.
Tesla (TSLA) has completed the tape-out of its AI5 chip and is advancing development of AI6 and Dojo3, CEO Elon Musk said on X on Wednesday. Tape-out marks the final design stage before a chip is sent to manufacturing. Shares of the electric vehicle manufacturer surged 6.3% intraday, among the top gainers on the S&P 500 and Nasdaq.
In economic news, the New York Federal Reserve's Empire State manufacturing index rebounded to 11.0 in April from minus 0.2 in March, above the expectations for a 0.0 print in a Bloomberg-compiled survey. The Empire State index is the first manufacturing sector reading for April and suggests a return to expansion.
The National Association of Home Builders' monthly housing market index fell to 34 in April from a revised 38 in March, compared with expectations for 37 in a survey compiled by Bloomberg. The index was below 40 a year ago and is at its lowest since September 2025.