U.S. stocks down as Middle East war rages

The benchmark S&P 500 index slid 0.3% to 6,762.75 points, the Nasdaq Composite declined 0.1% to 22,676.29 points, and the blue-chip Dow Jones Industrial Average was down 0.9% to 47,284.53 points

U.S. stocks were largely down on Wednesday, as the Iran war continued to rage on. A post-earnings surge in Oracle and an in-line U.S. consumer inflation reading did little to lift sentiment.

At 15:54 GMT, the benchmark S&P 500 index slid 0.3% to 6,762.75 points, the tech-heavy Nasdaq Composite declined 0.1% to 22,676.29 points, and the blue-chip Dow Jones Industrial Average was down 0.9% to 47,284.53 points.

Local stock markets notched a mixed close in the prior session. The Dow and S&P both declined marginally, while the Nasdaq eked out a positive close.

Traders spent much of the session pouring through news out of the rapidly-evolving fighting in the Middle East, with attention swirling around threats of intense attacks.

Yet equities appeared to largely shrug off these comments, analysts at Vital Knowledge said in a note, adding that sentiment was also swayed by Chinese trade numbers and stronger-than-anticipated U.S. existing home sales data. In the technology sector, semiconductor and chip component companies logged solid gains as well.

Meanwhile, the International Energy Agency (IEA) has proposed 400 million barrels of oil in what would be the largest ever emergency release to help quell recent ructions in oil prices caused by the Iran war, according to the Wall Street Journal.

Brent futures expiring in May were last up 4.3% to $91.58 per barrel.

Citing officials familiar with the matter, the WSJ said the release would surpass the 182 million barrels of oil that IEA member nations made available after Russia’s invasion of Ukraine in 2022.

Analysts at ING flagged that the release would be a “temporary measure,” adding that only military de-escalation can drive crude sustainably lower. The IEA’s move might be sending a “hidden signal” to markets that there are few expectations for an immediate ceasefire, they added.