Wall Street closed mixed on Wednesday, pulled down by energy and tech. Investor sentiment continued to be grim on artificial intelligence (AI) spending concerns, while falling fuel prices boosted travel-related stocks. Two of the three benchmark indexes ended in the red, while one ended in the green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.4%, or 182.06 points, to close at 51,848.9. Sixteen components of the 30-stock index ended in positive territory, while 14 ended in negative.
The tech-heavy Nasdaq Composite fell 110.4 points, or 0.4%, to close at 25,476.64.
The S&P 500 lost 7.24 points, or 0.1%, to close at 7,358.22. Five of the 11 broad sectors of the benchmark index closed in the red. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK) and the Communication Services Select Sector SPDR (XLC) declined 1.7%, 0.6% and 0.6%, respectively, while the Industrials Select Sector SPDR (XLI) advanced 1.2%.
The fear gauge CBOE Volatility Index (VIX) decreased 4.4% to 18.63. A total of 25.84 billion shares were traded on Wednesday, higher than the last 20-session average of 22.92 billion. Decliners outnumbered advancers by a 1.03-to-1 ratio on the NYSE and by a 1.08-to-1 ratio on the Nasdaq.
Falling Oil Prices Weigh on Energy, Support Broader Market
On Wednesday, oil prices slid to their lowest levels since the start of the Iran conflict. Expectations that more tankers would transit the Strait of Hormuz eased fears of a supply disruption and helped calm energy markets. Brent crude dropped $3.34, or 4.3%, to settle at $73.74 a barrel, while WTI fell $2.87, or 3.9%, to $70.34.
Investor confidence improved further after President Donald Trump said Iran had informed Washington that it was not seeking tolls from vessels using the strategic waterway. The comments reduced concerns about escalating trade and shipping costs. Lower crude prices also fueled hopes that inflationary pressures could remain contained, a positive development for consumers and businesses alike. Growth-oriented sectors benefited as investors rotated toward assets seen as sensitive to economic expansion.
Travel companies and airliners also got a boost from falling fuel prices. However, energy stocks lagged the broader market as the decline in oil prices weighed on profit expectations for producers. The mixed sector performance left Wall Street divided.
Consequently, shares of Exxon Mobil Corporation XOM and Chevron Corporation CVX slid 2% and 2.6%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Valuation Concerns Continue to Weigh on Tech
Wall Street’s concerns over elevated technology valuations persisted on Wednesday, pushing the Nasdaq and S&P 500 lower. Investors remained wary that many high-flying tech companies face mounting costs tied to building AI infrastructure, including data centers, chips and power capacity. While enthusiasm for AI remains strong, questions about whether future profits can justify both rich valuations and heavy capital spending continue to pressure the sector.
Economic Data
Per the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, New Home Sales for May came in at 580,000. The number for April was revised up to 626,000 from the previously reported 622,000.
Per a government report, for the week ending June 19, 2026, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 6.1 million barrels from the previous week. The number for the week prior remained unrevised at a decline of 8.3 million barrels.
Beyond Nvidia: AI’s Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren’t likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
This article originally published on Zacks Investment Research (zacks.com).
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