US stocks held losses on Wednesday as higher energy prices added to a less favorable macroeconomic backdrop.
The S&P 500 and Nasdaq 100 were around 0.4% lower while the Dow fell a sharper 1%.
Treasury yields rose after President Trump said the ceasefire with Iran was "over" following strikes by both sides, driving oil prices to surge and markets to reconsider inflationary risks.
The risk of higher inflation was aligned with FOMC minutes showing some members made the case for a rate hike in June.
Credit-sensitive sectors fell, with JPMorgan and Visa down 2%, while Home Depot and GE Vernovia sank 3%.
Meanwhile, AI hyperscalers were mostly lower after worries of overspending in data center infrastructure weighed on the sector earlier this week, with Alphabet, Amazon, and Microsoft dropping more than 1%.
On the other hand, Broadcom gained 5% after expanding its agreement with Apple on US-made components.
Also, Nvidia gained 1% as Chinese firms planned to buy more H200 chips.