S&P 500 Falls for Fourth Time in Five Days; Oil Prices Surge

The S&P 500 retreated sharply on Wednesday, pulling back after posting its best single-day performance in weeks. Market sentiment was highly mixed across sectors. Gains in the energy sector, driven by soaring oil prices amid escalating U.S.-Iran tensions, were fully offset by declines in major technology stocks, dragging the benchmark index lower. The latest drop marked the fourth decline for the S&P 500 within five trading days.

U.S. benchmark index S&P 500 edged down 0.1% on the day, trading in a narrow range through most of the session. Technology stocks faced stronger downward pressure, with the Nasdaq 100 falling 0.5% after dipping as much as 0.8% intraday. The chip sector showed divergent performance: the chipmaker-focused ETF reversed pre-market losses to close 0.44% higher, while industry leader NVIDIA rose 2.3%, recouping part of its early session losses.

Wall Street’s Magnificent Seven tech stocks fell roughly 1% collectively, led by Meta Platforms and Microsoft. Individual stocks saw notable divergence. Server manufacturer Super Micro Computer outperformed dramatically among S&P 500 constituents, surging 20%. The company updated its business outlook by raising its Q4 gross margin guidance and reporting a record-high order backlog, boosting market confidence significantly.

A landmark multi-billion-dollar AI server deal was struck between AMD and AI firm Anthropic PBC. The partnership will greatly strengthen AMD’s competitiveness against industry frontrunner NVIDIA and provide Anthropic with critical computing power to support its AI development. AMD’s stock climbed 1.5% following the deal announcement.

Geopolitical tensions emerged as a key market driver. Both the U.S. and Iran signaled reluctance to resume negotiations, intensifying regional frictions and fueling a sharp rally in crude oil prices. Benefiting from the oil surge, the energy sector became one of the best-performing segments of the S&P 500, advancing 1.2%, with Brent crude prices climbing to around $93.76 per barrel.

Broader market stocks also displayed mixed results. Telecom giant AT&T gained 3.5% after reporting better-than-expected Q2 earnings, with robust growth in net new postpaid wireless subscribers and upbeat adjusted earnings.

GE’s power equipment subsidiary Vernova was the worst performer in the S&P 500 on the day, plunging 8.7%. The steep decline stemmed from its weaker-than-forecast adjusted EBITDA and persistent weakness in its wind power business, triggering investor sell-offs over lingering performance pressures.

Consumer powerhouse Philip Morris International notched strong quarterly results, with Q2 sales beating market estimates thanks to robust demand for its smoke-free products. Its stock hit a new high and closed nearly 4% up. In contrast, software firm Pegasystems tumbled 16%. Analysts noted the company’s management commentary on delayed customer purchasing decisions echoed similar remarks from IBM earlier this month, sparking market concerns about softening industry demand and leading to a sharp share pullback.

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