On Wednesday, U.S. stock indexes faced significant declines, with the S&P 500 closing down 1.62%, the Dow Jones Industrial Average down 1.87%, and the Nasdaq 100 down 1.98%. Geopolitical tensions due to U.S. strikes on Iran contributed to the downturn, causing crude oil prices to rise by over 2%. The U.S. consumer price index (CPI) for May increased 4.2% year-over-year, aligning with expectations, while core CPI rose 2.9%, its fastest pace in seven months.
The rise in crude oil prices also negatively impacted several sectors, particularly airlines and trucking companies. Alaska Air Group and United Airlines saw losses exceeding 7%, while trucking firms such as FedEx Freight and Old Dominion Freight Line dropped by more than 5%. Notably, Super Micro Computer’s stock fell over 27% after announcing a $7 billion financing plan. In contrast, energy producers benefited from climbing oil prices, with Devon Energy gaining over 5%.
International markets mirrored U.S. trends, with the Euro Stoxx 50 down 0.66%, and Japan’s Nikkei falling 1.89%. The 10-year U.S. Treasury note yield rose to 4.540% amid pressures from inflation expectations linked to surging oil prices.
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