Finance

Tech-heavy indexes were particularly hard hit as the previous rally in AI-related stocks continued to lose momentum. Super Micro Computer shares plunged over 17% following a significant equity raise, adding to broader skepticism regarding the current valuations of semiconductor and infrastructure leaders.

West Texas Intermediate crude surged more than 2% to reach $92.39 per barrel following reported U.S. military strikes against targets in Iran. This escalation has heightened fears of supply disruptions in the Strait of Hormuz, contributing significantly to a headline inflation rate that reached 4.2% in May.

The yield on the 10-year U.S. Treasury note rose to 4.54% on Wednesday as investors processed the latest Consumer Price Index data and geopolitical risks. Higher energy costs are complicating the Federal Reserve's path, with markets now pricing in a higher probability that interest rates will remain in the 3.50% to 3.75% range for the remainder of the year.