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The Dow Jones Industrial Average 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 30-stock index flopped 577.18 points, or 1.1%, to 52,347.97.
The S&P 500 backed off 21.27 points to 7,482.58.
The NASDAQ sharply changed direction and actually gained 51.96 points to 25,870.65.
“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.”
Energy stocks rose as well. Shares of ConocoPhillips and Chevron gained 1% each, while shares of Marathon Petroleum advanced 3%.
Consumer stocks that may be impacted by higher energy prices fell. Home Depot slid 2%, while McDonald’s pulled back by more than 1%. Booking Holdings shed 4%.
Meanwhile, the release of minutes from the Federal Reserve’s June meeting, which was Chairman Kevin Warsh’s first, reflected a divided central bank not sure 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,” while also saying that “many other participants, however, assessed that the appropriate level of
the federal funds rate would be above the current target range.”
The stock market reaction to the minutes release was minimal.
Prices for the 10-year Treasury backtracked, raising yields to 4.57% from Tuesday’s 4.55%. Treasury prices and yields move in opposite directions.
Oil prices added $3.64 to $74.08 U.S. a barrel.
Gold prices sank $64.90 to $4,092.50 U.S. an ounce.
