Wall Street ends lower as Middle East tensions escalate

Wall Street's main indexes tumbled on Wednesday, with the Dow losing about 1.2%, the S&P 500 shedding about three-quarters of a percent and the Nasdaq falling roughly nine-tenths of a percent.

Reasons for the decline

Flaring tensions in the Middle East and rising crude prices stoked inflation jitters and convinced investors to take some profits.

Sector performance

Energy stocks, buoyed by oil prices, enjoyed the largest percentage gains, with Exxon Mobil and Chevron both closing higher. Meanwhile, six of the Magnificent Seven group of megacap tech stocks ended lower, with Meta the only exception.

Individual movers

Shares of GameStop jumped 6% after the original meme stock posted a rise in quarterly revenue and unveiled a $2 billion share buyback program. Shares of Crowdstrike, down nearly 3% at the close, dropped about another 10% in extended trading after the cyber security company reported a 15% jump in its first-quarter operating expenses as it ramps up investments in AI and product development. Shares of Broadcom fell more than 6% in extended trading despite the company forecasting third-quarter revenue above Wall Street expectations, betting on robust demand.

What this means for investors

The recent market moves reflect geopolitical uncertainty and shifting sentiment, with strength alternating between tech and energy sectors. Investors should closely monitor Middle East developments and oil prices.