Dow Hits Record as AI Stocks Cool, Oil Falls on Iran Report

The Dow Jones Industrial Average closed at a record 50,650.76 on Wednesday, rising 189 points, or 0.37%. The S&P 500 finished at 7,520.93, up 0.02%, and the Nasdaq Composite closed at 26,676.60, up 0.08%.

Trading reflected a pullback in semiconductor stocks and a shift into healthcare and consumer discretionary sectors. Consumer discretionary led gains among S&P 500 sectors, and blue-chip companies including Procter & Gamble helped support the Dow.

Oil prices fell about 5%, with U.S. crude near $88 per barrel, after a report that Tehran planned to restore commercial traffic through the Strait of Hormuz within a month. The White House later called the statement a “complete fabrication.” Investors continued to monitor developments tied to recent U.S. military activity near the waterway.

Financial stocks were mixed. JPMorgan Chase shares slipped roughly 2% after CEO Jamie Dimon warned the bank’s expenses could “rise by as much as $1 billion above earlier estimates” and added the firm might spend up to $20 billion on an acquisition “in the next couple years.”

Technology and chip stocks cooled after a strong rally. Micron Technology, which climbed more than 19% on Tuesday to top a $1 trillion market value, traded off session highs but remained modestly higher. Other chipmakers, including Intel, Qualcomm and Marvell Technology, moved lower, and Nvidia pulled back as the Philadelphia Semiconductor Index retreated from a recent high.

Market participants noted investors were reassessing valuations following recent gains tied to artificial intelligence and moving into more defensive areas of the market. Optimism about corporate earnings provided support: Goldman Sachs raised its 2026 year-end S&P 500 target to 8,000 from 7,600, citing continued earnings growth.

Attention now turns to Thursday’s personal consumption expenditures index, the Federal Reserve’s preferred inflation gauge. The PCE reading could affect expectations for monetary policy under incoming Fed Chair Kevin Warsh and influence short-term moves in stocks and bonds.