The S&P 500 ended lower Wednesday after U.S. President Donald Trump said an interim deal aimed at ending the war with Iran was "over," while Broadcom led gains among recently battered chip stocks.

Speaking at a NATO summit in Turkey, Trump said he had no interest in further talks with Iran and warned that Washington would likely carry ‌out additional strikes on Wednesday night.

THE LATEST SETBACK

Trump's comments marked the latest setback in the back-and-forth talks that have ​swung between threats of escalation and hopes for diplomacy, leaving investors wrong-footed by several false starts toward a peace deal.

"Duration is the key here. How long does this go on?" said Rob ⁠Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

"If we see damage to Iranian infrastructure, the market may ​have to respond more seriously to that because there's likely Iranian retaliation."

AI heavyweights Microsoft, Amazon and Alphabet each fell, weighing ⁠on the S&P 500.

Broadcom gained after Apple said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker.

"Any time you get an announcement from Apple about using your equipment, it's pretty positive — especially when you have 2.5 billion ‌Apple devices in people's hands around the globe," said Art Hogan, chief market strategist at B. Riley ​Wealth.

Nvidia rose after the ‌Information reported that China plans to allow its top AI firms to buy a limited number of the company's H200 chips.

While officials left interest rates unchanged, the minutes indicated some believed further rate hikes could be warranted if price pressures intensify.

Fed policymakers pointed to risks including tariffs, strong artificial intelligence-related investment and geopolitical tensions in the Middle East as factors that could keep inflation above the central bank's 2% target.

The prospect that borrowing costs could remain higher for longer weighed on much of the market, although technology shares helped lift the Nasdaq into positive territory.

As of the preliminary close for July 8. the Nasdaq Composite bucked the broader market, rising 51.96 points, or 0.20%, to 25,870.65, as investors continued to favor select technology and artificial intelligence stocks.

The S&P 500 slipped 21.15 points, or 0.28%, to 7,482.70, while the Dow Jones Industrial Average fell 577.06 points, or 1.09%, to 52,348.09, pressured by weakness in blue-chip stocks.

The small-cap Russell 2000 posted the day's steepest percentage decline, dropping 34.66 points, or 1.16%, to 2,947.82, signaling broader risk-off sentiment outside the largest technology names.

Oil prices jumped following Trump's remarks, with Brent crude ⁠futures settling up 5.2%. Treasury yields also rose as ‌the selloff spread to bonds.

The latest escalation ⁠in the conflict threatened to unsettle the equities rally that has carried the benchmark S&P 500 up about 9% so far this year, despite sharp ⁠declines after ⁠the Mideast war started.

A renewed jump in oil prices could revive inflation concerns and further complicate the Federal Reserve's path. Energy price-sensitive travel stocks fell as higher oil ‌prices stoked concerns over fuel costs and demand. United Airlines and Delta Air Lines both lost ground.

Cruise operators also slipped, with Carnival and Norwegian Cruise Line both down.

IMF: 3% GLOBAL GDP

The International Monetary Fund Wednesday once again lowered its 2026 global growth forecast to 3%, warning ‌of ongoing risks ​posed by the war in the ‌Middle East.

Inflation worries mounted at the U.S. central bank's meeting last month, as officials followed Federal Reserve Chairman Kevin Warsh's lead to a more stripped-down policy statement, minutes of the session showed on Wednesday.

Traders project ​a likely rate hike by the Fed's December meeting, according to CME's Fedwatch.