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Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 6, 2026. REUTERS/Jeenah Moon Purchase Licensing Rights, opens new tab
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Summary
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Companies
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Broadcom rises after Apple says it will spend $30 bln in chips deal
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Trump comments on Iran drive oil prices higher
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S&P 500 -0.36%, Nasdaq -0.08%, Dow -1.11%
July 8 (Reuters) - The S&P 500 fell on Wednesday after U.S. 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 Turkey, Trump said he had no interest in further talks with Iran and warned that Washington would likely carry out additional strikes on Wednesday night.
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Trump's comments marked the latest setback in the series of 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 U.S. 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."
AI heavyweights Microsoft (MSFT.O), opens new tab, Amazon (AMZN.O), opens new tab and Alphabet (GOOGL.O), opens new tab each fell more than 1%, weighing on the S&P 500.
S&P 500 components so far in 2026
Broadcom (AVGO.O), opens new tab gained 5.2% after Apple (AAPL.O), opens new tab said it plans to spend more than $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 (NVDA.O), opens new tab rose about 2.8% 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 PHLX chip index (.SOX), opens new tab rose 2.2%, and the index is up 77% in 2026.
The S&P 500 was down 0.36% at 7,477.10 points. The Nasdaq declined 0.08% to 25,798.29 points, while the Dow Jones Industrial Average was down 1.11% at 52,335.24 points.
Nine of the 11 S&P 500 sector indexes declined, led lower by industrials (.SPLRCI), opens new tab, down 3.41%, followed by a 2.45% loss in materials (.SPLRCM), opens new tab.
Oil prices jumped following Trump's remarks, with Brent crude futures up 5%. Treasury yields also rose as the selloff spread to bonds.
The latest escalation in the conflict threatened to unsettle the equities rally that has carried the benchmark S&P 500 up about 9% so far this year, despite sharp declines after the Mideast war started.
A renewed jump in oil prices could revive inflation concerns and further complicate the Federal Reserve's path.
Energy price-sensitive travel stocks fell as higher oil prices stoked concerns over fuel costs and demand. United Airlines (UAL.O), opens new tab dropped 2.3% and Delta Air Lines (DAL.N), opens new tab fell 1.9%.
Cruise operators also slipped, with Carnival (CCL.N), opens new tab down 3.7%, and Norwegian Cruise Line (NCLH.N), opens new tab losing 2.1%.
The International Monetary Fund on Wednesday once again lowered its 2026 global growth forecast to 3%, warning of ongoing risks posed by the war in the Middle East.
Inflation worries mounted at the U.S. central bank's meeting last month, as officials followed Federal Reserve Chairman Kevin Warsh's lead to a more stripped-down policy statement, minutes of the session showed on Wednesday.
Traders project a likely rate hike by the Fed's December meeting, according to CME's Fedwatch.
Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX), opens new tab by a 3.3-to-one ratio.
Reporting by Ragini Mathur and Avinash P in Bengaluru, and by Noel Randewich in San Francisco; Additional reporting by Chuck Mikolajczak in New York; Editing by Pooja Desai and Shinjini Ganguli and David Gregorio
Our Standards: The Thomson Reuters Trust Principles., opens new tab
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