03.06.202620:08:38UTC+00US Stocks Pull Back from Records

US equity indices retreated from record highs on Wednesday amid a renewed escalation of conflict in the Middle East. The S&P 500 closed down 0.7%, the Nasdaq 100 fell 0.9%, and the Dow Jones Industrial Average lost 619 points. Military exchanges between the US and Iran, along with attacks on GCC states, strained the existing ceasefire and prolonged naval blockades that are constraining energy exports from the region.

Oil and fuel prices climbed further, pushing yields higher across the Treasury curve. Expectations of a more hawkish Federal Reserve were reinforced by a strong ADP employment report and a robust ISM Services PMI, whose prices-paid component rose to its highest level in nearly four years.

Technology and software names were under pressure: Oracle and Palantir each fell more than 5%, while Microsoft declined 3%. In asset management, Blackstone and KKR both slid 4%, setting the tone for the sector.

In after-hours trading, Broadcom dropped 8% after missing quarterly revenue estimates and issuing guidance below market expectations. Cybersecurity firm CrowdStrike fell 7% following the release of its results.