U.S. stocks traded in split fashion by midday Wednesday, with a resilient Dow and S&P 500 masking softer breadth as rising oil prices and fresh tariffs kept a lid on risk appetite. Oil prices climbed as the U.S. carried out its 11th consecutive night of strikes on Iran, broadening its targets and stoking fears over the flow of crude through the Strait of Hormuz. West Texas Intermediate crude rose about 2.2%, trading near $88 a barrel.

The energy-driven inflation impulse rippled into rates. The 10-year Treasury yield pushed up about 2 basis points to 4.65%, while the 30-year yield climbed to 5.14%. Traders now see roughly a 24% chance of a July rate hike and about a 69% probability of at least a quarter-point increase by September, according to CME FedWatch.

Market Performance

The S&P 500 added 0.2% to 7,522.54, building on Tuesday’s 0.9% advance, while the Dow Jones Industrial Average rose about 0.3%, or roughly 160 points, supported by industrial and materials names. The Nasdaq 100 slipped about 0.4% as a semiconductor bounce faded and megacap tech softened. Alphabet Inc. edged up 0.3% while Tesla Inc. slipped 0.5% ahead of their after-the-close results. The small-cap Russell 2000 lagged, falling about 0.7% as higher yields weighed on rate-sensitive names.

Gold pushed higher on safe-haven demand, rising about 1.9% to trade near $4,150 an ounce, its highest level since July 7, as investors tracked the Middle East conflict and looked ahead to next week’s Federal Reserve meeting.

Sector Movers

Sector leadership tilted defensive and cyclical. The Utilities Select Sector SPDR Fund led the S&P 500 with a gain of about 1.6%, followed by the Materials Select Sector SPDR Fund, up roughly 1.4%, and the Energy Select Sector SPDR Fund, up about 0.9% alongside firmer crude.

Beneath the sector picture, the day’s biggest single-stock was Super Micro Computer Inc., which rocketed about 26%. The AI server maker said backlog rose to record levels, with more than $60 billion in new orders received during its fiscal fourth quarter, and guided fourth-quarter gross margin to a range of 15% to 17%, sharply above its prior 8.2% to 8.4% outlook. The read-through lifted rival Dell Technologies Inc., which climbed about 10% on expectations of similar demand strength when it reports next month.

Industrials provided the other bright spot. Westinghouse Air Brake Technologies Corp. jumped about 12% after the rail-technology company posted Q2 adjusted EPS of $2.76 versus $2.63 expected and revenue of $3.18 billion, and lifted full-year guidance to adjusted EPS of $10.60 to $10.90 on a record $30.9 billion backlog. Penske Automotive Group, Inc. rallied about 11% following its second-quarter results.

The pain was concentrated in enterprise software. Pegasystems Inc. tumbled about 15% after second-quarter adjusted EPS of $0.35 and revenue of $420.7 million missed Street estimates of $0.43 and $428.4 million, with management warning that “unprecedented changes in the AI market” have led enterprise customers to delay purchasing decisions. That warning rippled across automation peers, dragging UiPath Inc. down about 12% in sympathy.

The Nasdaq Composite staged a notable intraday recovery to unofficially close down just 8.43 points, or 0.03%, at 25,511.81 — a significant turnaround from an earlier post-open decline of 466.90 points, or 1.80%, to 25,415.05. The rebound pared the bulk of the session's losses, offering some relief after a prolonged period of selling pressure. Investor sentiment, as measured by the CNN Money Fear and Greed Index, held at a reading of 43.50, down slightly from a prior reading of 44, reflecting continued caution in the market.

Session Performance Overview

The table below captures the Nasdaq Composite's movement across sessions, from earlier opens through the latest unofficial close:

Broader Market Context

Tuesday's session saw the technology-heavy index weighed down by declines in the semiconductor sector. Most sectors on the S&P 500 closed Tuesday on a positive note, with health care, real estate, and energy stocks recording the biggest gains. However, information technology and industrials stocks bucked the overall market trend, closing the session lower. The Dow Jones Industrial Average closed lower by around 131 points to 52,925.15, while the S&P 500 fell 0.45% to 7,503.85.

Corporate Movers and Economy

On the corporate front, Crinetics Pharmaceuticals Inc. shares jumped approximately 99% after the company announced it will be acquired by Vertex Pharmaceuticals. Conversely, Rivian Automotive Inc. shares dipped 18% following an announcement of an offering of 75 million shares. On the economic data front, the U.S. trade deficit rose to $77.6 billion in May, compared to a revised $54.6 billion gap in April, with market estimates having anticipated a $78.5 billion shortfall. The latest gap was the largest since March 2025, driven by a 3.3% rise in imports to $395.3 billion. Investors were also awaiting earnings results from Helen of Troy Ltd., PriceSmart Inc., and Levi Strauss & Co.