U.S. equity indexes closed lower on Wednesday, snapping a nine-session winning streak for the S&P 500, as rising geopolitical tensions in the Middle East and higher Treasury yields pressured markets. The Dow Jones Industrial Average led losses, falling 620.72 points, or 1.21%, to 50,687.07, while the S&P 500 declined 56.10 points, or 0.74%, to 7,553.68. The Nasdaq Composite dropped 239.92 points, or 0.89%, to 26,853.98, reflecting broad-based weakness despite ongoing enthusiasm for artificial intelligence. The selloff marked a shift from recent record-setting gains, with investors weighing the resilience of the AI-driven rally against escalating global risks.

Rising oil prices and heightened U.S.-Iran tensions were key macro drivers, with crude gaining amid concerns over potential disruptions to the Strait of Hormuz. Simultaneously, Treasury yields climbed, increasing pressure on equity valuations, particularly in rate-sensitive technology shares. Market sentiment turned cautious, as reflected in mixed stock futures early in the session and a notable rotation away from recent outperformers. While global manufacturing data provided some support to risk assets, the overall tone was risk-off, with investors balancing strong economic signals against growing geopolitical uncertainty. Notable movers included semiconductor firms like Marvell and Broadcom, underscoring the sector’s sensitivity to both macro and geopolitical developments.