Wall Street ended mixed on Wednesday, July 8, as a late rebound in technology shares offset a sell-off triggered by fresh US-Iran strikes and minutes showing a divided Federal Reserve. The S&P 500 fell 0.3%, and the Dow lost 1.1%, while the Nasdaq Composite rose 0.2%.
Market Snapshot
The S&P 500 (US500) closed at 7,481.46 points and the Dow Jones Industrial Average (DJI) at 52,348.09. The Nasdaq Composite (IXIC) settled at 25,870.65 after reversing an intraday slide of as much as 1.1%.
Brent crude briefly topped $80 a barrel for the first time since June 22 before paring gains. The VIX volatility index rose 4.8% to 16.90.
Event Details
US Central Command said American forces struck more than 80 targets in Iran late Tuesday after attacks on three commercial vessels in and around the Strait of Hormuz. Targets included air defence systems, command networks, coastal radar sites, anti-ship missile capabilities and more than 60 Islamic Revolutionary Guard Corps boats.
Iran did not publicly claim the tanker attacks. Iranian state media said military sites in Kuwait and Bahrain were targeted in response, while Tehran warned it could close the strait if US attacks continued.
The clash threatened a June interim agreement aimed at halting fighting, reopening the strait and allowing Iranian oil sales. Washington also revoked a licence that had allowed those sales, one of Tehran’s incentives under the arrangement.
Fed Minutes
Minutes from the Fed’s June 16-17 meeting added a second source of uncertainty. Policymakers kept rates steady, but the record showed officials split over whether inflation would ease or remain high because of AI demand, Middle East conflict and tariffs.
A few policymakers saw a case for raising rates at the meeting. Earlier projections showed half of 18 officials favoured higher rates by year-end.
“Future policy is heavily contingent on the political situation in the Middle East,” Jeffrey Roach, chief economist at LPL Financial, said in Wednesday commentary.
Sector Reaction
Technology and energy were the only S&P 500 sectors to finish higher. The Philadelphia Semiconductor Index rose more than 2% after falling nearly 14% over the previous four sessions.
Chip shares steadied after Tuesday’s sell-off, when Samsung Electronics (005930.KS) issued strong profit guidance but failed to calm worries over AI demand and memory-chip pricing. Nvidia (NVDA) gained 3.7% and Broadcom (AVGO) rose 4.8%.
Outlook
Traders will next watch whether tanker traffic through Hormuz normalises, whether Washington and Tehran restart talks, and whether upcoming inflation data shift Fed rate-hike expectations.
Early earnings from Levi Strauss (LEVI), PepsiCo (PEP) and Delta Air Lines (DAL) will also show how companies are managing higher energy costs and softer consumer demand.
