The S&P 500 ended lower on Wednesday after US President Donald Trump said an interim deal aimed at ending the war with Iran was "over," while Broadcom led gains among recently battered chip stocks.

Speaking at a Nato summit in Türkiye, Trump said he had no interest in further talks with Tehran before the US military launched fresh strikes in Iran. Trump's comments marked the latest setback in the back-and-forth talks that have swung between threats of escalation and hopes for diplomacy, leaving investors wrong-footed by several false starts toward a peace deal.

"Duration is the key here. How long does this go on?" said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle. "If we see damage to Iranian infrastructure, the market may have to respond more seriously to that because there's likely Iranian retaliation."

SpaceX fell 0.8 percent to US$148.38, the satellite and rocket company's lowest close since its Wall Street debut on June 12. Microsoft and Alphabet each fell more than 1 percent, while Meta Platforms lost 2 percent.

Helping keep the Nasdaq in positive territory, Broadcom rallied 4.8 percent after Apple said it plans to spend more than US$30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker.

"Any time you get an announcement from Apple about using your equipment, it's pretty positive – especially when you have 2.5 billion Apple devices in people's hands around the globe," said Art Hogan, chief market strategist at B Riley Wealth.

Nvidia rose 3.65 percent after the Information reported that China plans to allow its top AI firms to buy a limited number of the company's H200 chips.

The S&P 500 declined 0.3 percent to end the session at 7,482 points. The Nasdaq gained 0.2 percent to 25,870 points, while the Dow Jones Industrial Average declined 1.1 percent to 52,348 points.

Oil prices surged following Trump's remarks. Treasury yields also rose as the selloff spread to bonds.

Energy price-sensitive travel stocks fell as higher oil prices stoked concerns over fuel costs and demand. United Airlines and Delta Air Lines both lost more than 1 percent. Cruise operators also slipped, with Carnival down 3.9 percent and Norwegian Cruise Line losing 1.9 percent.

The International Monetary Fund on Wednesday once again lowered its 2026 global growth forecast to 3 percent, warning of ongoing risks posed by the war in the Middle East. (Reuters)



Edited by Cecil Wong