People work on the floor of the New York Stock Exchange (NYSE) on July 7, 2026 in New York City.
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Dow Jones Industrial Average fell sharply on Wednesday after US President Donald Trump told a NATO summit in Turkey that the ceasefire with Iran was “over” as renewed hostilities in the Middle East sent oil prices soaring.
The 30-share index fell 576.76 points, or 1.09%, to close at 52,348.39. S&P 500 Index fell 0.28% to close at 7,482.71. Nasdaq Composite bucked the trend and rose 0.2% to settle at 25,870.65.
International Brent oil futures Quotes rose 5.43% to $78.19 per barrel. West Texas Intermediate Futures rose 4.37% to close at $73.52.
“I think it’s over. I don’t want to deal with them anymore. They’re scum,” Trump said.
Later on Wednesday, the president threatened to attack Iran again, saying “we’re going to hit them hard tonight.”
Trump’s remarks followed what the US called a “series of powerful strikes” against Iran on Tuesday in response to attacks on three commercial ships sailing through the Strait of Hormuz.
Speaking to reporters at a NATO summit in Ankara, Turkey on Wednesday, the military alliance’s Secretary General Mark Rutte said the US strikes were “absolutely necessary”.
“When you have a ceasefire and Iran actually violates the ceasefire — we see what happened yesterday with the attack on the ships — I think it’s critical that the U.S. respond decisively,” he said.
Energy stocks also rose. Shares ConocoPhillips added 2%, and Chevron received 1%. Shares Marathon Petroleum advanced by 5%.
Consumer stocks, which could be affected by higher energy prices, fell. Home Depot decreased by 2%, while McDonald’s fell back more than 1%. Booking holdings will lose 4%.
Chip stocks, which came under pressure in the previous session, stabilized. VanEck Semiconductor ETF (SMH) up about 2%, although the fund is still nearly 12% below its recent high.
“Renewed tensions in the Middle East have disrupted what has become an increasingly complacent market narrative, prompting investors to reassess geopolitical risks after weeks of pricing in a smooth path to de-escalation,” Danielle Hathorne, senior market analyst at Capital.com, said Wednesday morning.
“The latest attacks have reminded investors that while the ceasefire remains in place, a lasting agreement between the US and Iran is far from guaranteed. Markets have become resigned to the idea that the conflict will gradually fade into the background, but recent events suggest that this assumption may have been premature,” Hathorne added.
Meanwhile, the release of minutes from the Federal Reserve’s June meeting, which was Chairman Kevin Warsh’s first, reflected a split at the central bank, which is unsure how to proceed on rates without more information on inflation.
The minutes stated that “many participants indicated that the appropriate level of the federal funds rate would be within or slightly below the current target range at the end of this year,” and also stated that “many other participants, however, estimated that the appropriate level of the federal funds rate would be above the current target range.”
The stock market reaction to the publication of the protocol was minimal.
— CNBC’s Garrett Downs contributed reporting.