Finance

The Nasdaq and S&P 500 closed lower on Wednesday as significant losses in the chip sector, including double-digit drops for Micron and Sandisk, offset gains in other areas. Although most individual stocks in the S&P 500 actually rose, the concentrated weakness in high-performing AI beneficiaries pulled the broader averages into the red.

Fed Chairman Kevin Warsh indicated that inflation risks have decreased recently, though he reaffirmed the central bank's commitment to a 2% long-term target. During recent comments, he avoided explicit guidance on upcoming rate hikes, shifting focus toward the use of real-time economic data for future policy moves.

Crude oil benchmarks fell as negotiations regarding shipping in the Strait of Hormuz showed signs of progress, easing concerns over global supply disruptions. Brent crude dropped toward $71 a barrel, while WTI crude fell below $69 following reports that indirect talks between the U.S. and Iran were advancing.