Quick overview

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Investors remain focused on the conflict in the Middle East, while today’s agenda is dominated by the Federal Reserve’s interest-rate decision and quarterly earnings from major technology companies.

Wall Street’s main indexes traded without a clear direction on Wednesday following the sharp losses seen in the previous session. Attention is centered on earnings reports from some of the market’s largest companies, while oil prices climbed back toward $110 per barrel as negotiations between the United States and Iran showed little sign of progress.

The U.S. signaled it would maintain its naval blockade of Iranian ports in an effort to choke off Tehran’s oil exports and force the country back to the negotiating table. President Donald Trump said Tuesday that Iran was in a “state of collapse.”

Treasury Secretary Scott Bessent later stated that Washington’s “maximum pressure” campaign had accelerated inflation inside Iran and left the country running low on oil reserves. According to Bessent, Tehran may soon be forced to cut production.

July Brent Crude futures jumped 5.5% to around $110 per barrel, marking their eighth consecutive daily gain and reaching the highest level since April 6. Meanwhile, U.S. West Texas Intermediate crude futures climbed 6.5% to $106.5 per barrel, their highest level since April 7.

A Key Day for Wall Street

Against this backdrop, the S&P 500 slipped 0.13%, while the tech-heavy NASDAQ Composite fell 0.15%. The DJIA declined 0.60%.

Investors are preparing for the busiest day of an earnings-heavy week, with roughly 35% of S&P 500 companies set to report results. On Wednesday, attention turns to earnings from Alphabet Inc., Amazon.com, Inc., Microsoft Corporation, and Meta Platforms, Inc..

Markets also digested the latest monetary policy decision from the Federal Reserve. The Fed left interest rates unchanged within the 3.5%–3.75% range in what could become the final policy meeting chaired by Jerome Powell before his successor, Kevin Warsh, formally takes office.

Global Markets Mixed

In Europe, the EURO STOXX 50 fell 0.39%. Germany’s DAX declined 0.31%, while France’s CAC 40 lost 0.39%. Outside the eurozone, the UK’s FTSE 100 dropped 1.16%.

In Asia, Hong Kong’s Hang Seng Index rose 1.68%, while Shanghai’s benchmark index gained 0.71%. South Korea’s KOSPI advanced 0.75%, whereas Japan’s Nikkei 225 fell 1.02%.