U.S. stocks retreat as Middle East tensions persist

U.S. stocks ended lower on Wednesday, as lingering uncertainty over U.S.-Iran negotiations and escalating developments in Lebanon weighed on investor sentiment.

The Dow Jones Industrial Average fell 620.72 points, or 1.21 percent, to 50,687.07. The Standard and Poor's 500 sank 56.10 points, or 0.74 percent, to 7,553.68. The Nasdaq Composite Index shed 239.93 points, or 0.89 percent, to 26,853.98.

Six of the 11 primary Standard and Poor's 500 sectors closed in the red, with technology and financials leading the declines at 1.52 percent and 1.21 percent, respectively. Energy and consumer staples were the top performers, rising 1.38 percent and 0.77 percent, respectively.

Wall Street continued to closely monitor U.S. talks with Iran, which have shown no clear signs of resolution. Earlier this week, U.S. President Donald Trump stated on social media that negotiations were continuing "at a rapid pace." However, Israel's intensified military campaign against Hezbollah in Lebanon has emerged as a significant obstacle to reaching an agreement to end the conflict and reopen the Strait of Hormuz.

Oil prices rose materially on Wednesday. West Texas Intermediate crude for July delivery increased 2.26 U.S. dollars, or 2.41 percent, to settle at 96.02 dollars per barrel on the New York Mercantile Exchange. Brent crude for August delivery gained 1.81 dollars, or 1.89 percent, to settle at 97.81 dollars per barrel on the London ICE Futures Exchange.

Rising oil prices also pushed U.S. Treasury yields higher, with the 10-year yield approaching 4.5 percent and the 30-year yield nearing 5 percent.

Meanwhile, payroll provider ADP reported that companies added 122,000 workers in May, up from 105,000 in April and better than the Dow Jones consensus estimate of 110,000.

In corporate trading, IBM, Salesforce, Microsoft and Nvidia weighed on the market, falling between roughly 3 percent and 7 percent. Broadcom slipped 0.49 percent ahead of its earnings report, despite gaining nearly 5 percent on Tuesday to reach a record close.

Investors remain cautious amid the complex geopolitical situation in the Middle East, as well as Friday's nonfarm payrolls report.

U.S. stocks retreat as Middle East tensions persist

China's safeguard measures on imported beef are designed to help the domestic cattle industry weather its current difficulties rather than to restrict normal trade, said He Yongqian, a spokeswoman for the Ministry of Commerce, on Thursday.

"On December 31, 2025, the Ministry of Commerce issued an announcement to implement safeguard measures on imported beef. The measures have been implemented in the form of country-specific quotas and additional tariffs for quantities exceeding the quotas. Specifically, starting from the third day after the quantity of beef imports from a particular country reaches its annual quota, importers of beef from that country must pay an additional 55 percent tariff on top of the currently applicable tariff rate," He explained the measures at a press conference in Beijing.

"I would like to emphasize that the implementation of safeguard measures on imported beef is a temporary step designed to help the domestic industry navigate through current difficulties, rather than to restrict normal beef trade. China's market remains open, and China is willing to work with all parties to jointly maintain a stable and healthy international trade environment," said He.

The measures are in effect from Jan 1, 2026 to Dec 31, 2028, and will be progressively relaxed at fixed intervals during the three-year period, according to the ministry.

For products originating from developing countries or regions, safeguard measures shall not apply if the import share of an individual country or region does not exceed 3 percent, and the total import share of all such countries and regions does not exceed 9 percent. However, safeguard measures will apply to these countries or regions starting from the following year if the conditions are not met.

China's safeguard measures on imported beef not designed to restrict normal trade: spokeswoman