US close: Stocks lower as Iran tensions, Q2 earnings remain in focus

(Sharecast News) - Major indices closed mostly lower on Wednesday as investors digested another batch of corporate earnings, while geopolitical tensions continued to simmer in the background.

At the close, the Dow Jones Industrial Average was down 0.01% at 52,218.58, while the S&P 500 shed 0.14% to 7,498.96, and the Nasdaq Composite saw out the session 0.57% softer at 25,690.90.

The Dow closed just 6.06 points lower on Wednesday, doing little to impact gains recorded in the previous session.

Attention was firmly fixed on developments in the US-Iran conflict throughout the session on Wednesday. Speaking at the ASEAN Foreign Ministers' meeting in the Philippines, US Secretary of State Marco Rubio said Washington was still committed to diplomacy but accused Tehran of breaching the two sides' agreement over the Strait of Hormuz, warning the US would act to protect its interests if talks failed.

Rubio's comments came as US Central Command carried out its 11th straight night of strikes, targeting Iranian military operations centres, maritime assets, aircraft hangars, drone storage sites and logistics infrastructure.

Oil extended its recent rally amid fears of supply disruption, with Brent up 3.14% at $93.87 a barrel and West Texas intermediate gaining 2.95% to $86.83 a barrel. The climb in energy prices fed into expectations of tighter Federal Reserve policy, with markets now pricing a 24.1% chance of a rate rise this month and a 69% probability of at least a quarterpoint increase in September.

In the corporate space, telecommunications firm AT&T posted a steady set of secondquarter numbers, with revenues up 2.3% yearonyear at $31.6bn, operating income rising to $7bn from $6.5bn, and diluted earnings per share improving to $0.66 from $0.62, while tobacco giant Philip Morris also reported higher Q2 revenue, advancing 10.4% year-on-year to $11.2bn.

After the close, Google parent company Alphabet posted strongerthanexpected Q2 revenues, rising to $119.80bn against $116.93bn forecast, driven by an 82% surge in cloud revenue, although adjusted earnings per share of $2.85 came in just shy of expectations.

Tesla, meanwhile, delivered weakerthanexpected Q2 earnings despite topping revenue forecasts, reporting adjusted EPS of $0.33 versus $0.51 expected on revenue of $28.24bn, while IBM lowered its 2026 outlook and posted softer quarterly profits, with adjusted EPS of $2.93 missing estimates and revenue of $17.16bn falling short of consensus.

On the macro front, US mortgage applications increased by 1.9% in the week ended 17 July, according to the Mortgage Bankers Association of America, bouncing back from two straight weekly losses. Last week's increase comes despite another period of increasing interest rates, with the benchmark 30-year fixed-mortgage rising four basis points to its highest level since August 2025. Applications to purchase a new home rose 6%, while applications to refinance a mortgage, which are generally more sensitive to short-term interest rate, fell by 2%.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $31.25 2.56%

Johnson & Johnson (JNJ) $255.63 2.00%

Boeing Co. (BA) $208.65 1.88%

Verizon Communications Inc. (VZ) $44.29 1.16%

Goldman Sachs Group Inc. (GS) $1,098.20 1.16%

Chevron Corp. (CVX) $192.98 1.00%

Merck & Co. Inc. (MRK) $127.47 0.95%

JP Morgan Chase & Co. (JPM) $348.21 0.86%

Procter & Gamble Co. (PG) $149.13 0.68%

Travelers Company Inc. (TRV) $372.08 0.66%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $163.00 -4.15%

International Business Machines Corporation (CDI) (IBM) $205.77 -2.25%

Microsoft Corp. (MSFT) $390.34 -2.11%

Nike Inc. (NKE) $42.21 -1.75%

Unitedhealth Group Inc. (UNH) $431.31 -1.16%

Visa Inc. (V) $353.42 -0.67%

American Express Co. (AXP) $348.74 -0.58%

Cisco Systems Inc. (CSCO) $112.21 -0.47%

Walt Disney Co. (DIS) $95.87 -0.28%

McDonald's Corp. (MCD) $263.57 -0.13%

S&P 500 - Risers

Wabtec Corp. (WAB) $290.00 10.04%

Western Digital Corp. (WDC) $556.67 6.80%

NRG Energy Inc. (NRG) $139.98 6.37%

Nektar Therapeutics (NKTR) $69.32 6.18%

Seagate Technology Plc (STX) $908.10 5.90%

Kohls Corp. (KSS) $19.08 5.30%

International Paper Co. (IP) $38.09 4.79%

PACCAR Inc. (PCAR) $131.11 4.69%

Illumina Inc. (ILMN) $190.87 4.63%

Advanced Micro Devices Inc. (AMD) $552.33 4.52%

S&P 500 - Fallers

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Autodesk Inc. (ADSK) $203.50 -5.70%

Ipg Photonics Corp. (IPGP) $97.84 -5.38%

Corning Inc. (GLW) $154.06 -5.16%

Intuitive Surgical Inc. (ISRG) $340.69 -4.19%

TE Connectivity Ltd (TEL) $200.28 -4.18%

Salesforce.Com Inc. (CRM) $163.00 -4.15%

VeriSign Inc. (VRSN) $262.59 -3.99%

Fortinet Inc. (FTNT) $155.05 -3.84%

Gen Digital Inc. (GEN) $25.58 -3.76%

Nasdaq 100 - Risers

Western Digital Corp. (WDC) $556.67 6.80%

Seagate Technology Plc (STX) $908.10 5.90%

PACCAR Inc. (PCAR) $131.11 4.69%

Illumina Inc. (ILMN) $190.87 4.63%

Microchip Technology Inc. (MCHP) $85.02 3.07%

Micron Technology Inc. (MU) $959.48 2.62%

Nvidia Corp. (NVDA) $212.06 2.61%

Broadcom Inc. (AVGO) $396.81 2.33%

Vodafone Group Plc ADS (VOD) $15.51 2.27%

Fastenal Co. (FAST) $45.33 1.96%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

NetEase Inc. Ads (NTES) $121.21 -7.66%

Workday, Inc. (WDAY) $132.42 -7.53%

Autodesk Inc. (ADSK) $203.50 -5.70%

Check Point Software Technologies Ltd. (CHKP) $127.91 -4.58%

Intuitive Surgical Inc. (ISRG) $340.69 -4.19%

Gen Digital Inc. (GEN) $25.58 -3.76%

Adobe Systems Inc. (ADBE) $218.36 -3.73%

Automatic Data Processing Inc. (ADP) $243.12 -3.40%

Trip.com Group Limited (TCOM) $42.58 -3.12%