Dow Jones drops 0.9% as Iran conflict pressures US stocks while Oracle jumps nearly 11%

US stock markets moved mostly lower on Wednesday as geopolitical tensions around Iran continued to weigh on investor sentiment. The surge in Oracle shares and stable US inflation data did little to lift overall market mood.

The Dow Jones Industrial Average recorded the biggest decline among the major indexes. Meanwhile the S&P 500 and Nasdaq also slipped slightly as traders monitored developments in the Middle East conflict.

At 11:54 ET the S&P 500 stood at 6762.75 points after falling 0.3 percent. The Nasdaq Composite declined 0.1 percent to 22676.29 points. The Dow Jones Industrial Average dropped 0.9 percent to 47284.53 points.

Markets had delivered a mixed close in the previous session. The Dow Jones and S&P 500 ended slightly lower while the Nasdaq managed a small gain.

Dow Jones falls 0.9% as Iran conflict weighs on US stock markets

Much of the trading session focused on the rapidly evolving conflict involving Iran. Investors reacted to comments from US officials suggesting that more intense attacks on Iran could occur if tensions continue to escalate.

Despite these headlines markets did not see extreme panic selling. Analysts noted that equities appeared to largely absorb the geopolitical news while other economic data provided some support.

Stronger than expected US existing home sales and solid Chinese trade data helped limit deeper losses in stocks. Technology companies also showed pockets of strength during the session.

Semiconductor and chip component companies posted gains which supported the Nasdaq index even as broader market sentiment remained cautious.

Meanwhile oil markets reacted strongly to the geopolitical tensions.

Brent crude futures were up 4.3 percent at 91.58 USD per barrel. West Texas Intermediate crude rose 4.2 percent to 87.02 USD per barrel.

The International Energy Agency is reportedly considering releasing 400 million barrels of oil from emergency stockpiles. If approved this would become the largest emergency oil release ever.

The proposal would exceed the 182 million barrels released after Russia invaded Ukraine in 2022.

Analysts say the move would only offer temporary relief to oil markets. Energy prices are expected to remain volatile as long as tensions in the region continue.

US inflation data matches forecasts as CPI rises 2.4% YoY

Investors were also closely watching the latest US inflation data. The February Consumer Price Index report showed inflation largely in line with market expectations.

According to the US Bureau of Labor Statistics headline CPI increased 0.3 percent month over month. On a yearly basis inflation rose 2.4 percent.

Core CPI which excludes food and energy climbed 0.2 percent month over month. The yearly core inflation rate reached 2.5 percent.

The data suggests inflation was relatively stable before the recent spike in oil prices caused by the Iran conflict.

However rising gasoline prices in the US may push inflation higher in the coming months.

Analysts say higher energy costs could affect consumers airlines and industrial companies if oil prices continue to rise.

The Federal Reserve may now face a complicated policy outlook as it balances energy driven inflation risks with signs of slowing employment growth.

Some analysts believe the central bank could still deliver at least one interest rate cut later this year if inflation continues to trend closer to the 2 percent target.

Oracle stock jumps nearly 11% after strong earnings and AI driven cloud growth

Oracle shares surged sharply after the company reported stronger than expected quarterly results. The stock jumped nearly 11 percent after the earnings announcement.

The company reported adjusted earnings of 1.79 USD per share for fiscal Q3 2026. Revenue reached 17.19 billion USD. Analysts had expected earnings of 1.70 USD per share and revenue of 16.92 billion USD.

Oracle’s cloud computing business remained the biggest growth driver. Revenue in the cloud segment jumped 44 percent year over year to 8.91 billion USD.

The company also raised its revenue outlook for fiscal 2027 as demand for artificial intelligence infrastructure continues to grow rapidly.

Analysts say Oracle is benefiting from the boom in AI data centers and cloud computing services. The results suggest stronger long term growth prospects for the company as businesses expand their use of AI technologies.