U.S. Stocks Extend Losses as Middle East Escalation Fuels Market Uncertainty

Wednesdays trading session saw broad market losses, with the Dow Jones falling nearly 1,000 points, while the S&P 500 and Nasdaq also declined sharply. Investors are increasingly rotating away from technology stocks and into sectors such as healthcare, financials, and energy.

Earlier today, U.S. stock futures moved higher despite ongoing tensions between the United States and Iran. S&P 500, Nasdaq 100, and Dow futures all posted gains.

Oil prices moved higher in the last few hours as tensions in the Middle East intensified following a new round of military actions between the United States and Iran. U.S. crude oil futures rose to $90.80 per barrel, while Brent crude futures climbed to $93.70 per barrel as investors reacted to growing concerns about potential disruptions to global energy supplies.

Asian markets traded sharply lower, led by South Korea‘s Kospi, which fell more than 4%, while Japan’s Nikkei and Australias ASX 200 also declined.

Oracle shares plunged more than 11% in after-hours trading after the company announced plans to raise an additional $20 billion to fund its artificial intelligence expansion. The move weighed on technology-related stocks and added pressure to a sector that has already been experiencing profit-taking after months of strong gains.

Investors are also closely watching upcoming economic data, including the Producer Price Index (PPI) and weekly jobless claims.

Gold prices remain under pressure after falling to their lowest level since November 2025, struggling to recover above the $4,100 level. The upside for gold remains limited as markets increasingly expect the Federal Reserve to maintain a hawkish stance. While core inflation slowed in May, headline inflation accelerated to 4.2% year-over-year, its highest level in three years, largely due to a sharp rise in energy prices.