New York — Wall Street closed mixed on Wednesday as declines in major technology stocks weighed on broader market gains. The Standard & Poor’s 500 index slipped 7.24 points, or 0.1%, to finish at 7,358.22, despite nearly two-thirds of its components posting gains. Meanwhile, the Dow Jones industrial average, with less exposure to tech, rose 182.06 points, or 0.4%, to 51,848.90. The tech-heavy Nasdaq composite moved lower by 110.40 points, or 0.4%, ending the session at 25,476.64.

Technology companies continued to drag on the market, with Microsoft leading the losses among the sector’s giants, falling 2.3%, marking the heaviest negative impact on the S&P 500. Oracle also dropped sharply by 4.6%. Alphabet, Google’s parent company, declined 0.2%, although its upcoming addition to the Dow Jones Industrial Average on Monday remains a focal point for investors. Alphabet’s inclusion will make it the fifth member of the so-called “Magnificent 7” tech companies now represented in the Dow, alongside Apple, Amazon, Microsoft, and Nvidia.

Analysts highlighted concerns about valuations within the technology sector after a year of driving historic gains. Jason Vaillancourt, chief portfolio strategist at Columbia Threadneedle, noted that the evolving phase of artificial intelligence investment is starting to meet tighter market discipline.

Oil prices fell significantly amid ongoing negotiations between the United States and Iran that could signal an end to the conflict affecting the region. Brent crude, the international benchmark, declined 3.8% to $73.87 per barrel, while U.S. crude prices decreased 3.9% to $70.34 per barrel. These decreases came despite prices remaining above levels seen prior to the outbreak of hostilities earlier in the year. Energy sector shares followed suit, with ExxonMobil down 2% and Chevron losing 2.6%.

In contrast, the homebuilding sector saw notable gains following the passage of new legislation favorable to the industry. KB Home surged 16.7%, and D.R. Horton rose 6.7%, positioning the sector as one of the day’s top performers.

On the bond front, yields on Treasury securities mostly retreated, easing some upward pressure on stocks. The 10-year Treasury yield dropped to 4.40% from 4.50%, and the two-year yield slightly decreased to 4.15% from 4.16%. Despite these declines, yields remain elevated compared with earlier in the year, reflecting market expectations for at least one Federal Reserve interest rate hike by December. Investors are awaiting Thursday’s release of the personal consumption expenditures price index, the Fed’s preferred inflation gauge, which is forecasted to show a 4.1% increase for May—the highest level in three years.

Rick Gardner, chief investment officer at RGA Investments, emphasized the upcoming inflation data's significance, citing Federal Reserve Chair Kevin Warsh’s recent statements underscoring the central bank’s commitment to price stability.

Gold prices also declined, falling 3.4% to settle at $4,008.80 per ounce. Gold briefly traded below $4,000 during the session for the first time since November. The precious metal, which reached above $5,000 per ounce earlier this year, is often viewed as an indicator of investor risk sentiment, with selling typically occurring as market anxiety decreases.

Markets in Europe exhibited mixed results following the varied performance seen in the U.S. trading session.