US stocks end mixed, weighed down by more losses for tech giants
[June 25, 2026] By
DAMIAN J. TROISE
NEW YORK (AP) — Stocks wavered to a mixed close on Wall Street Wednesday
as technology stocks once again weighed down the market.
Declines for several influential tech heavyweights, including Microsoft,
pulled the broader market lower even though most stocks in the S&P 500
gained ground. That was also the case on Tuesday, when tech stocks
pulled the market lower despite broader gains elsewhere.
The S&P 500 fell 7.24 points, or 0.1%, to 7,358.22, despite nearly 2 out
of every 3 stocks gaining ground. The Dow Jones Industrial Average,
which is less weighted with tech stocks, rose 182.06 points, or 0.4%, to
51,848.90.
The tech-heavy Nasdaq composite fell 110.40 points, or 0.4%, to
25,476.64.
A 2.3% drop in Microsoft was the heaviest weight on the market. Oracle
slumped 4.6%.
Many large tech companies have been behind Wall Street’s record-setting
run throughout the year, but analysts have warned their valuations may
have become stretched.
“The next phase of the AI investment cycle is beginning to collide with
market discipline,” said Jason Vaillancourt, chief portfolio strategist
at Columbia Threadneedle, in a research note.
Google’s parent company Alphabet slipped 0.2%. The company is replacing
Verizon in the Dow on Monday. The company’s inclusion in the S&P 500
means more to investors, however, because 401(k) accounts are much more
likely to include an S&P 500 index fund than anything tied to the Dow.
Alphabet will become the fifth Magnificent 7 company to join the Dow.
The others are Apple, Amazon, Microsoft and Nvidia.
Oil prices continued slipping as the U.S. and Iran negotiate a possible
end to their war. Brent crude, the international standard, fell 3.8% to
$73.87 a barrel. It has been trading below $80 in recent days but is
still above the roughly $70 per barrel it was trading at in late
February before the war began. U.S. crude prices fell 3.9% to $70.34 a
barrel.
Oil companies had some of the biggest losses. Exxon Mobil fell 2% and
Chevron lost 2.6%.
Some of the bigger winners on Wall Street included homebuilders
following approval of legislation beneficial to the industry. KB Home
surged 16.7% and D.R. Horton jumped 6.7%.
Treasury yields mostly fell, removing some pressure from stocks. The
yield on the 10-year Treasury fell to 4.40% from 4.50% late Tuesday. The
yield on the 2-year Treasury eased to 4.15% from 4.16%.
[to top of second column] |
Anders Opedal, President and CEO of Norway's Equinor, left, meets
with specialist Patrick King on the floor of the New York Stock
Exchange, after he rang the closing bell, Tuesday, June 16, 2026.
(AP Photo/Richard Drew)
 Treasury yields are still elevated
from earlier in the year, especially the 2-year Treasury, which more
closely tracks anticipated action from the Federal Reserve. The
central bank has signaled that it is considering raising its
benchmark interest rate by the end of the year. Wall Street is
forecasting at least one hike to interest rates by December,
according to data from CME Group.
The Fed is worried about stubborn inflation, which had been rising
throughout the year as tariffs raised the costs for a wide range of
goods. A shock to energy prices because of the U.S. war with Iran
worsened inflation. Gasoline prices surged and shipping costs rose.
The impact is expected to linger even as oil and gasoline prices
fall.
The central bank will get an update on inflation Thursday, when its
preferred measure for prices is released. Economists expect the
Personal Consumption Expenditures price index, or PCE, to show that
prices rose 4.1% in May. That would be the highest level in three
years.
“Thursday’s PCE is set to take on greater importance for markets,
especially since Federal Reserve Chair (Kevin) Warsh was emphatic in
last week’s meeting about the central bank’s desire to achieve price
stability,” wrote Rick Gardner, chief investment officer at RGA
Investments, in a research note.
Gold prices fell 3.4% to settle at $4,008.80 an ounce. Earlier in
the day, gold briefly traded below $4,000, and hasn't settled below
that level since November. Gold was above $5,000 an ounce earlier in
the year. The precious metal is often seen as a barometer of the
appetite for risk among investors, with more buying at times of
increased anxiety and more selling as anxiety eases.
Markets were mixed in Europe.
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AP Business Writers Chan Ho-him and Matt Ott contributed to this
report.
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