US stocks today: Wall Street mixed as tech stocks slide, Iran tensions weigh on sentiment

Wall Street's major indexes traded mixed to lower on Wednesday as investors grappled with a continued selloff in technology stocks, rising geopolitical tensions in the Middle East, and expectations that the Federal Reserve could keep interest rates elevated for longer.The S&P 500 was nearly flat after recovering from an early decline, while the Dow Jones Industrial Average fell around 0.5%.The Nasdaq Composite, heavily weighted towards technology stocks, also traded lower.The latest bout of volatility comes after AI-linked stocks, which had driven much of the market's gains this year, came under renewed pressure amid concerns that valuations have risen too far, too fast.Technology and artificial intelligence-related shares extended recent losses.Nvidia, Broadcom and Micron Technology fell between 1% and 3.8%, while the S&P 500 technology index dropped 1.1%.Shares of AI server maker Super Micro Computer tumbled more than 14% after the company announced plans to raise $7 billion through stock and convertible preferred share offerings to support growing demand for its AI servers.Micron Technology continued its volatile run, recovering from early losses to trade higher during the session.Despite sharp swings in recent days, the stock remains up more than 230% this year, as per news agency AP.At the same time, some semiconductor-related companies bucked the trend.KLA and Applied Materials gained nearly 6% each, helping support the broader market.Investor sentiment received some support from fresh inflation data released earlier in the day.US consumer prices rose 4.2% year-on-year in May, the highest level since April 2023, largely due to higher energy costs linked to Middle East tensions.However, the reading matched economists' expectations.Reuters quoted B Riley Wealth chief market strategist Art Hogan as saying, "While it is very much in-line with expectations, it's still moving in the wrong direction."The report helped Treasury yields ease slightly. The benchmark 10-year Treasury yield slipped to around 4.52%, while the two-year yield edged down to 4.11%.Markets still expect the Federal Reserve to keep interest rates unchanged at its June meeting, though investors continue to price in at least one rate hike later this year, according to Reuters.Geopolitical developments remained a key concern for investors.Renewed tensions between the United States and Iran overshadowed the inflation data. US President Donald Trump said Iran had taken too long to negotiate a deal and would now "have to pay the price", while Tehran signalled it could reassess diplomatic engagement with Washington following recent exchanges of fire.Oil prices rose amid concerns over disruptions to global energy supplies. Brent crude gained about 1.3% to $92.60 per barrel.The ongoing uncertainty surrounding negotiations over the Strait of Hormuz, a critical route for global oil shipments, has added to market volatility.Asian markets also came under pressure. South Korea's Kospi plunged 4.5%, while Japan's Nikkei 225 fell 1.9%, hurt by weakness in technology shares and concerns over rising producer prices.European markets traded lower as investors assessed the implications of rising inflation, geopolitical risks and uncertainty over future central bank policy.The CBOE Volatility Index, often referred to as Wall Street's "fear gauge", climbed above 20, its highest level since early April, according to Reuters, reflecting increased caution among investors.