Chip stocks retreat after run as investors rotate 

CHIP STOCKS RETREAT AFTER RUN AS INVESTORS ROTATE

Wall Street's main indexes are mixed with just modest changes in early trade on Wednesday as fresh U.S.-Iran tensions cast doubt on peace in the Middle East, marking a cautious start to the second half of 2026.

Tehran said it would not meet with top U.S. envoys who flew to the region following ​an outbreak of hostilities. Although a source with direct knowledge of the talks as well as an Iranian official said the U.S. and Iran held technical talks in Doha, contrasting rhetoric suggested a breakthrough could be elusive.

Meanwhile, Federal Reserve Chair Kevin Warsh on Wednesday said that inflation expectations and inflation risks have come down in recent weeks, even as he repeated the Fed is committed to bringing inflation down to its 2% goal.

Traders are eyeing the U.S. 10-year Treasury yield TVC:US10Y, which flirted with the 4.5% level earlier, and is now around 4.46%. June ADP National Employment and ISM manufacturing PMI and prices paid all came in below estimates.

A majority of S&P 500 CBOE:SPX sectors are higher with communication services SP:S5TELS, up more than 2%, the leading gainer. Tech SP:S5INFT, down more than 1%, is taking the biggest hit.

Under the surface, software & services (.SPLRCIS) along with gold/silver miners (.XAU) are showing strength. Chip stocks NASDAQ:SOX, after a blistering first-half run, are sharply lower.

Here is a snapshot of where markets stood around 10:16 a.m. ET.