S&P 500 Ends 0.2% Lower, Nasdaq 100 Slips 0.5% on Wednesday as Oil Spikes 3.4% Amid Iran Escalation

U.S. stock indices closed lower on Wednesday as oil prices surged following escalated tensions between the U.S. and Iran. The S&P 500 ended 0.2% lower at 7,498.96, while the Nasdaq 100 slipped 0.5% to 28,998.10 and the Dow Jones Industrial Average closed flat at 52,218.58. Brent crude futures rose 3.4% to $94.07 per barrel, briefly topping $95, after the eleventh consecutive round of U.S. military strikes against Iran. Secretary of State Marco Rubio stated that Iran is "not serious about talks," signaling continued U.S. military posture.

Major tech stocks tumbled on earnings concerns. Alphabet dropped 5% after-hours despite beating Q2 earnings and revenue expectations, after raising its capex outlook to $205 billion, triggering investor concerns about AI spending sustainability. Tesla fell 4% after-hours as second-quarter adjusted earnings slipped 18% year-over-year. Reddit is considering restricting Google's access to its content for AI training, while Amazon cut staff in its artificial general intelligence division. Paramount Skydance secured EU antitrust clearance for its Warner Bros. Discovery acquisition.