Stocks moved sharply lower on Wednesday after U.S. President Donald Trump told the NATO summit in Turkey that the ceasefire with Iran is “over” amid renewed hostilities in the Middle East that sent oil prices surging.
The Dow Jones Industrials hurtled lower 734.59 points, or 1.4%, to 52,190.56.
The S&P 500 fell 66.57 points to 7,437.48.
The NASDAQ swooned 219.45 points to 25,599.24.
Energy stocks rose. Shares of ConocoPhillips and Chevron gained 2% each, while shares of Marathon Petroleum advanced 5%.
Consumer stocks that may be impacted by higher energy prices fell. Home Depot slid 3%, while McDonald’s pulled back by more than 1%. Booking Holdings shed 4%.
“I think it’s over. I don’t want to deal with them anymore. They’re scum,” Trump said.
Trump’s remarks followed what the U.S. called a “series of powerful strikes” against Iran on Tuesday in retaliation to attacks against three commercial vessels traveling in the Strait of Hormuz.
Speaking to reporters at the NATO summit in Ankara, Turkey, on Wednesday, the military alliance’s Secretary General Mark Rutte said America’s strikes were “absolutely necessary.”
Investors’ attention will also turn to the minutes from the Federal Open Market Committee’s June meeting, due at 2 p.m. ET Wednesday.
The release is expected to provide more insight into Federal Reserve Chairman Kevin Warsh’s first policy meeting, where officials left interest rates unchanged while signaling that additional rate hikes could be warranted if inflation pressures persist.
Prices for the 10-year Treasury swooned, raising yields to 4.59% from Tuesday’s 4.55%. Treasury prices and yields move in opposite directions.
Oil prices added $5.27 to $75.71 U.S. a barrel.
Gold prices sank $111 to $4,047.40 U.S. an ounce.
