Oil prices jumped and U.S. stocks fell on Wednesday as renewed U.S.-Iran strikes in the Strait of Hormuz reignited supply concerns, sparking a broader selloff in high-valuation technology shares. The move came after President Donald Trump warned that Tehran had “taken too long to negotiate a deal” and would “have to pay the price,” while threatening additional strikes against Iran.

West Texas Intermediate crude climbed 3.3% to around $91.07 a barrel, while Brent rose 2.9% to roughly $94.10.

On Wall Street, losses were broad-based but concentrated in technology, as concerns over elevated AI-related valuations resurfaced.

The S&P 500 fell 0.9% to 7,319.63, while the Dow Jones Industrial Average dropped about 592 points, or 1.2%, to 50,280.

The Nasdaq 100 was the day’s laggard, sliding 1.4% to 28,670. The small-cap Russell 2000 proved more resilient, slipping just 0.3% to 2,858.65.

Gold extended its sharp pullback, falling 3.1% to around $4,128 an ounce and leaving the metal down nearly 13% so far this month.

In macro news, the annual inflation rate climbed from 3.8% to 4.2% year over year in May, matching expectations and reaching the highest level since April 2023.

Money markets now fully price in a 25-basis-point Fed rate hike by year’s end.

Wednesday’s Performance In Major US Indices

Index	Last	% Change
S&P 500	7,319.63	-0.9%
Dow Jones	50,280	-1.2%
Nasdaq 100	28,670	-1.4%
Russell 2000	2,858.65	-0.3%

According to the Benzinga Pro platform:

• The Vanguard S&P 500 ETF (NYSE:VOO) fell 0.9%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) slid 1.2%.
• The Invesco QQQ Trust (NASDAQ:QQQ) dropped 1.4%.
• The iShares Russell 2000 ETF (NYSE:IWM) eased 0.3%.

Oil & Gas Stocks Power Up As Airlines Get Crushed

The Energy Select Sector SPDR Fund (NYSE:XLE) led all 11 S&P sectors, up 2.6%, as crude’s surge lifted producers and Middle East supply risk returned to the fore. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) topped the industry tables with a 3.7% gain.

The selling was led by the Industrials Select Sector SPDR Fund (NYSE:XLI), down 2.5%, followed by the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY), down 1.7%, and the Technology Select Sector SPDR Fund (NYSE:XLK), off 1.6% as semiconductors buckled.

Higher oil prices punished airlines, dragging the U.S. Global Jets ETF (NYSE:JETS) down 3.8%, while rate-sensitive renewables slumped, with the Invesco Solar ETF (NYSE:TAN) tumbling 4.1%. The VanEck Gold Miners ETF (NYSE:GDX) fell 3.7% alongside bullion, and the VanEck Semiconductor ETF (NASDAQ:SMH) lost 2.9% as Broadcom Inc. (NASDAQ:AVGO), down 4.5%, and Micron Technology Inc. (NASDAQ:MU), down 3.5%, weighed on the group.

Large-Cap Gainers

Casey’s General Stores Inc. (NASDAQ:CASY) surged 14.3% after fiscal fourth-quarter results released Tuesday evening showed diluted EPS of $4.37, up 66% year-over-year and a sizable beat, capping a year in which the convenience-store chain was added to the S&P 500. 

Murphy USA Inc. (NYSE:MUSA) rose 9.0% as the spike in crude and pump-price volatility tied to the Iran conflict promised to fatten fuel margins, with KeyBanc recently lifting its price target to $600 at Overweight. 

E.l.f. Beauty Inc. (NYSE:ELF) jumped 7.8% in a relief bounce after its quarterly report, even as it issued cautious fiscal 2027 guidance and flagged a $15-$20 million potential hit from higher oil prices, with JPMorgan, Raymond James and BofA all keeping bullish ratings while trimming targets. 

Devon Energy Corp. (NYSE:DVN) gained 6.5%, riding the oil rally alongside its post-Coterra-merger outlook, an $8 billion buyback and a 33% dividend increase.

On The Downside

Super Micro Computer Inc. (NASDAQ:SMCI) cratered 17.9% after announcing roughly $7 billion of equity and equity-linked financing to fund component purchases for some $39 billion of AI-server orders, stoking dilution fears amid the broader chip selloff. 

Summit Therapeutics Inc. (NASDAQ:SMMT) slid 10.4% in a “sell-the-news” reaction to its ASCO ivonescimab data, after H.C. Wainwright cut the biotech to Neutral and Bernstein reiterated Underperform. 

Wednesday’s Russell 1000 Top Gainers

Name	% change
Casey’s General Stores Inc.	+14.3%
Murphy USA Inc.	+9.0%
e.l.f. Beauty Inc.	+7.8%
Duolingo Inc. (NASDAQ:DUOL)	+7.1%
Devon Energy Corp.	+6.5%

Wednesday’s Russell 1000 Top Losers

Name	% change
Super Micro Computer Inc.	-17.9%
Summit Therapeutics Inc.	-10.4%
Alcoa Corp. (NYSE:AA)	-7.9%
Generac Holdings Inc. (NYSE:GNRC)	-7.8%
Lazard Inc. (NYSE:LAZ)	-7.6%