Trump’s Declaration U.S.-Iran Ceasefire Is ‘Over’ May Weigh On Wall Street

The major U.S. index futures are currently pointing to lower open on Wednesday, with stocks likely to see further downside after ending the previous session mostly lower.

Concerns about the re-escalation of the conflict in the Middle East are likely to weigh on Wall Street after President Donald Trump declared the U.S.-Iran ceasefire “over.”

“As far as I’m concerned, it’s over,” Trump told reporters at the NATO summit in Ankara, Turkey, calling negotiations with Iran a “waste of time.”

Trump’s comments have led to a surge by the price of crude oil, with U.S. crude oil futures spiking by more than 4 percent.

The jump in prices may lead to renewed concerns about the outlook for inflation and interest rates ahead of the release of the minutes of the Federal Reserve’s June monetary policy meeting later in the day.

Trump’s remarks came after U.S. Central Command said it completed a new round of offensive strikes against Iran, hitting over 80 targets in response to Iran’s latest attacks on commercial vessels transiting the Strait of Hormuz.

Iran’s Revolutionary Guards claimed they targeted U.S. military sites in Bahrain and Kuwait hours after the U.S. strikes.

After coming under pressure early in the session, stocks staged a recovery attempt in mid-day trading on Tuesday but moved back to the downside as the day progressed.

The major averages all finished the day in negative territory, with the tech-heavy Nasdaq showing a notable decline.

The Nasdaq tumbled 302.47 points or 1.2 percent to 25,818.69, the S&P 500 fell 33.58 points or 0.5 percent to 7,503.85 and the Dow dipped 130.76 points or 0.3 percent to 52,925.15.

The slump by the Nasdaq came amid a sharp pullback by semiconductor stocks, with the Philadelphia Semiconductor Index plummeting by 4.7 percent.

Semiconductor stocks were under pressure following a nearly 7 percent plunge by shares of South Korean memory chipmaker Samsung Electronics.

Samsung reported a 19-fold spike in second quarter profits, but the company’s stock tumbled amid concerns about spending and demand.

“Although Samsung’s results were stellar, investors are getting nervous about the scale of money ploughing into AI and whether it’s a bubble waiting to burst,” said Dan Coatsworth, head of markets at AJ Bell.

A report from Reuters indicating Chinese startup DeepSeek is developing its own AI chip also weighed on semiconductor stocks.

Networking stocks also showed a substantial move to the downside, dragging the NYSE Arca Networking Index down by 3.7 percent.

Gold, airline and computer hardware stocks also saw considerable weakness, while energy, pharmaceutical and healthcare stocks turned in strong performances.

Energy stocks benefited from a sharp increase by the price of crude oil, although the spike in prices weighed on other sectors.

U.S. crude oil futures surged in response to reports of projectile attacks against several vessels travelling through the Strait of Hormuz.

Commodity, Currency Markets

Crude oil futures are surging $3.14 to $73.58 a barrel after jumping $1.89 to $70.44 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,079.80, down $77.60 compared to the previous session’s close of $4,157.40. On Tuesday, gold slipped $10.10.

On the currency front, the U.S. dollar is trading at 162.47 yen compared to the 162.09 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1403 compared to yesterday’s $1.1411.

Asia

Asian stocks ended mostly lower on Wednesday, with tech shares coming under selling pressure amid concerns that the AI-fueled rally in chipmakers may be losing momentum.

Renewed U.S.-Iran tensions also weighed on sentiment after the U.S. carried out a fresh round of airstrikes on Iran, targeting more than 80 locations in response to Iranian attacks on three commercial vessels in the Strait of Hormuz.

The U.S. dollar held around its highest level in a week in Asian trading, Japanese government bond yields surged to multi-decade highs and Euro zone bond yields reached their highest levels in nearly a month as renewed Middle East tensions drove up crude oil prices, threatening the inflation outlook and giving rise to Fed rate hike expectations.

Gold was firm above $4,100 an ounce ahead of the release of minutes from last month’s Federal Reserve meeting later in the day. Brent crude futures surged toward $76 a barrel on heighted fears over Strait of Hormuz disruptions.

China’s Shanghai Composite Index fell 0.5 percent to 3,970.88. Hong Kong’s Hang Seng Index soared 3 percent to 24,199.46, led by technology stocks after a report from Reuters indicated Chinese startup DeepSeek is developing its own AI chip.

Alibaba Group Holding shares surged 12.2 percent, while Tencent and JD.com rallied around 3.8 percent each.

Japanese markets tumbled as investors remained cautious of AI-related stocks. The Nikkei 225 Index tumbled 2.1 percent to 66,819.05, while the broader Topix Index slumped 1.4 percent to 4,006.43.

Tech stocks followed their U.S. peers lower, with Tokyo Electron falling over 3 percent and Taiyo Yuden plunging 8.5 percent.

Seoul stocks nosedived on the back of higher oil prices and escalating geopolitical tensions. Semiconductor stocks extended their sell-off as investors reassessed the outlook for artificial intelligence (AI) trade.

The Kospi Index plummeted 5.4 percent to 7,246.79. Market bellwether Samsung Electronics slumped 6.3 percent, chip giant SK Hynix lost 5.7 percent and carmaker Hyundai Motor tumbled 3.6 percent.

Australian markets ended slightly lower to extend losses for a third consecutive session. The benchmark S&P/ASX 200 Index fell more than 1 percent to reach its lowest level in a week before recouping significant losses to settle 0.2 percent lower at 8,785.10.

The broader All Ordinaries Index slipped 0.3 percent to 8,979.30, dragged down by losses in mining and gold stocks.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.7 percent to 13,665.18 as the Reserve Bank of New Zealand raised its key interest rate for the first time in three years and signaled the potential for more hikes to come.

Europe

European stocks have fallen on Wednesday, extending losses from the previous session as renewed Middle East tensions fueled concerns over inflation and the outlook for central bank policy.

Oil prices and bond yields surged after U.S. President Donald Trump declared the Iran ceasefire “is over” at the NATO summit.

Iran’s Revolutionary Guards said they targeted U.S. military sites in Bahrain and Kuwait, hours after the U.S. launched a wave of military strikes on Iran.

Investors also await the release of the minutes of the first Federal Reserve meeting chaired by Kevi Warsh for fresh insights into the Fed’s rate trajectory.

While the U.K.’s FSE 100 Index is down by 0.9 percent, the French CAC 40 Index and the German DAX Index are both down by 1.7 percent.

IG Group Holdings has tumbled after the British online trading firm announced a proposal to establish a new holding company in Jersey.

Vistry has also plummeted after the housebuilder warned of a first-half loss and outlined plans to slim its business.

Student accommodation provider Unite Group has also slumped after saying it expects its annual rental growth to be slightly down on previous expectations.

Developer and investor Hammerson has also plunged as it announced the sale of £69 million of non-core assets.

Kering has also fallen. The French luxury goods group announced that its Italian fashion house Gucci has entered into a 50 -year exclusive beauty license agreement with French cosmetics and beauty products giant L’Oreal Co. L’Oreal shares were down 1 percent.

Meanwhile, energy giants BP Plc and Shell have surged as Brent crude prices rose above $76 per barrel for the first time in two weeks on concerns about prolonged disruptions to supply.

U.S. Economic News

The Energy Information Administration is scheduled to release its crude oil inventories in the week ended July 3rd at 10:30 am ET. Crude oil inventories are expected to dip by 1.9 million barrels.

At 1 pm ET, the Treasury Department is due to announce the results of this month’s auction of $39 billion worth of ten-year notes.

The Federal Reserve is scheduled to release the minutes of its June 16-17 monetary policy meeting at 2 pm ET.

At 3 pm ET, the Federal Reserve is due to release its report on consumer credit in the month of May. Consumer credit is expected to increase by $17.5 billion.