NEW YORK, July 8 (Xinhua) -- U.S. stocks closed mixed on Wednesday after U.S. President Donald Trump declared the U.S. ceasefire with Iran was "over" and threatened additional military strikes, triggering a sharp rise in oil prices.
The Dow Jones Industrial Average fell 1.09 percent to 52,348.39. The S&P 500 sank 0.28 percent to 7,482.71. The Nasdaq Composite Index increased 0.2 percent to 25,870.65.
Nine of the 11 primary S&P 500 sectors ended in the red, with materials and financials leading the laggards by dropping 2.49 percent and 1.92 percent, respectively. Meanwhile, energy and technology were the only gainers by rising 1.45 percent and 1.44 percent, respectively.
Trump later reiterated his threat, stating that the United States would "hit them hard tonight." The escalation in rhetoric heightened geopolitical uncertainty in the Middle East.
Iranian Foreign Ministry spokesperson Esmaeil Baqaei wrote Wednesday on X that the United States "has challenged this clause and, in practice, violated the agreement's structure through its unilateral actions as well as aggressive attacks against Iran. The Islamic Republic of Iran will steadfastly pursue the protection of its national interests and the exercise of its sovereignty."
Oil prices advanced after the developments. West Texas Intermediate for August delivery gained 3.08 U.S. dollars, or 4.37 percent, to settle at 73.52 dollars a barrel on the New York Mercantile Exchange. Brent crude for September delivery added 3.86 dollars, or 5.2 percent, to settle at 78.02 dollars a barrel on the London ICE Futures Exchange.
In corporate news, Apple announced a new multi-year agreement to purchase at least 30 billion dollars worth of chips from Broadcom. Broadcom rose nearly 5 percent in mid-afternoon trading, while Apple shares gained nearly 1 percent.
Attention also turned to the Federal Reserve's June meeting minutes, released Wednesday afternoon, which revealed divisions among policymakers regarding whether to raise interest rates and whether current policy is sufficiently restrictive. Fed Chair Kevin Warsh has signaled that the central bank will refrain from providing forward guidance.
"Several participants remarked that they did not see the current policy stance as restrictive, while a few other participants commented that they saw the current policy stance as slightly restrictive," the minutes said.
The implied probability of an interest rate hike by September increased to 68.8 percent as of Wednesday afternoon, up from 62 percent the prior day, with odds surging to 85.3 percent by December, according to CME Group's FedWatch tool. The combination of renewed geopolitical risks and uncertainty over the Fed's policy path contributed to a cautious tone across Wall Street.
