US markets closed mostly in red on Wednesday amid concerns about a re-escalation of the conflict in the Middle East after President Donald Trump indicated the ceasefire with Iran had effectively ended and suggested further military action could follow. On the economic front, a report released by the Commerce Department showed US wholesale inventories rose 0.1% month-over-month to $941.8 billion in May 2026, following a 0.7% increase in April and below a 0.3% gain in the advance estimate. The latest reading marked the third consecutive month of slower inventory growth after a 1.5% increase in March, the strongest since mid-2022. Compared with a year earlier, wholesale inventories were 4.0% higher, accelerating from an upwardly revised 1.2% increase in May 2025.
On the sectoral front, housing stocks witnessed significant weakness during the session, amid concerns about the outlook for interest rates, dragging the Philadelphia Housing Sector Index down by 3.8 percent. Substantial weakness was also visible among gold stocks, which tumbled along with the price of the precious metal. Reflecting the weakness in the sector, the NYSE Arca Gold Bugs Index plunged by 3.6 percent to its lowest closing level in over seven months. However. Computer hardware and semiconductor stocks turned in strong performances on the day, contributing to the recovery by the tech-heavy Nasdaq.
Dow Jones Industrial Average fell 576.76 points or 1.09 percent to 52,348.39 and S&P 500 decreased 21.14 points or 0.28 percent to 7,482.71, while Nasdaq increased 51.96 points or 0.2 percent to 25,870.65.
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