US stocks close mixed as Dow drops 289 points despite tech resilience

US stocks closed mixed on Wednesday as investors navigated rising geopolitical tensions and higher Treasury yields.

The Dow Jones Industrial Average fell 289 points to 47,417.21, while the S&P 500 slipped 0.08% to 6,775.75.

The Nasdaq Composite bucked the broader weakness, edging up 0.08% to 22,716.14, supported by resilience in technology shares.

Oil climbs despite IEA move

Crude oil remained at the centre of market developments on Wednesday after the International Energy Agency announced a coordinated release of 400 million barrels from strategic reserves.

The move was aimed at cooling the oil prices, which have touched a high of $120 a barrel in the past few days.

But the oil prices remained tight throughout Wednesday's trading session and seem to be pushing further higher.

The crude is already up more than 50% so far in 2026, and Brent is trading near elevated levels that stir memories of past oil shocks.

However, the stock market’s reaction to this commodity spike revealed a striking divergence.

Despite the jump in the underlying asset, energy equities have struggled to capture the full momentum.

Rather than tracking crude's parabolic leap, major energy-linked funds like the widely tracked Energy Select Sector SPDR ETF (XLE) have merely edged higher.

Some analysts also pointed to concerns that interventions like the IEA release could cap longer‑term upside for producers, even if spot prices remain volatile in the near term.

War anxiety and yields sap risk appetite

The markets traded in a bit of a relaxed mode yesterday after President Donald Trump hinted that the joint Israel-US strikes on Iran may end soon.

But, as the strikes continued on Wednesday with no fresh commentary from the US administration, the sell-off continued.

That backdrop typically supports safe-haven demand, though gold slipped on the day.

Some strategists noted prices could consolidate near the $5,250–$5,300 range if geopolitical tensions ease.

In the bond market, Treasury yields edged higher as traders reassessed the likelihood and timing of interest rate cuts.

Higher yields pressured rate‑sensitive pockets of the equity market: healthcare and utilities sectors both declined, with key sector ETFs such as XLV and XLU ending lower on the day.

Despite the broad sell‑off, technology names showed relative resilience, helping the Nasdaq limit its losses versus the Dow and S&P 500.

Still, the overarching tone was of defensive repositioning rather than aggressive buying, with many investors choosing to step back.

Measures of market volatility remain elevated and are hovering near levels last seen when Trump's sweeping tariffs were roiling global markets.

With no clear resolution in sight, the traders closed the session braced for more sharp swings as the week progresses and fresh economic data test the market’s confidence.