US equities end lower; Dow loses 620 points

US stocks ended Wednesday in the negative territory as oil prices and Treasury yields rose, with investors concerned that the ongoing conflict in the Middle East could fuel inflationary pressures and lead to tighter monetary policy.

The Dow Jones Industrial Average dropped 1.21%, or 620 points, to 50,867.

The S&P 500 inched down 0.74%, or 56 points, to 7,553, snapping nine-session gains. The Nasdaq Composite declined 0.89%, or 239 points, to 26,853.

In Europe, the STOXX Europe 600 index fell 0.66%, or 6 points, to 621.

The UK’s FTSE 100 slipped 0.40% to 10,332. Germany's DAX lost 1.31% to 24,795, and France's CAC 40 fell 0.71% to 8,150.

In Japan, the Nikkei 225 rose 2.50%, or 684 points, to close at a record high of 68,000 points for the first ever time, while the broader Topix index gained 1.85% to 3,996.

On oil, Brent crude futures for August delivery rose 1.89%, or $1.81, to settle at $97.80 a barrel.

US WTI crude futures for July delivery climbed 2.41%, or $2.26, to $96.02 a barrel.

Gold futures for August delivery fell 1.17%, or $53, to close at $4,466.90 per ounce.

Markets Drivers

The Wall Street Journal reported that US-Iran talks had broken down, heightening concerns that the conflict could persist and fuel inflation, potentially prompting the Federal Reserve to raise interest rates for a third time this year.

The decline in technology and AI stocks also weighed on sentiment.