Wall Street’s Rollercoaster Ride Amid Middle East Tensions and Trade Talks

Wall Street faced a downturn on Wednesday, as mounting tensions in the Middle East unnerved investors, despite a pacifying inflation report alleviating fears of tariff-induced price pressures.

The S&P 500 lost modest gains when news emerged that the U.S. embassy in Iraq was preparing for a possible evacuation, escalating security concerns in the region. In light of this, a top Iranian official warned that Tehran might target U.S. bases if nuclear talks falter.

Meanwhile, data revealed that consumer prices barely rose in May, hinting at a potential acceleration later due to tariffs, with headline inflation ticking just below expectations at 2.4%. As trade discussions between the U.S. and China seemed to reach a new phase, the markets hoped for a de-escalation in trade barriers.

(With inputs from agencies.)