U.S. Stocks Give Back Ground Following Recent Upward Trend

(RTTNews) - Stocks moved mostly lower over the course of the trading session on Wednesday, giving back ground after trending higher over the past several sessions. The major averages all moved to the downside, with the Dow showing a notable slump.

The Dow showed a downward move going into the end of the day, closing down 620.72 points or 0.7 percent at 50,687.07. The Nasdaq also slid 239.93 points or 0.9 percent to 26,853,98, while the S&P 500 fell 56.10 points or 0.7 percent to 7,553.68.

The pullback on Wall Street came amid uncertainty about the situation in the Middle East, as negotiations between the U.S and Iran continue to drag on.

U.S. Central Command said U.S. forces successfully defeated multiple Iranian ballistic missiles and drones and conducted "self-defense" strikes on Qeshm Island in response to attempted attacks by Iran on Tuesday.

The ongoing military exchanges have contributed to a sharp increase by the price of crude oil, with U.S. crude oil futures surging by more than 2 percent.

However, stocks have recently been able to shrug off concerns about the war amid persistent optimism about strong earnings and resilient economic growth.

"For now, risk appetite remains supported, but with stretched valuations and shifting monetary policy expectations, markets appear increasingly sensitive to any signs that the earnings and growth story may begin to soften," said Daniela Hathorn, Senior Market Analyst at Capital.com.

In U.S. economic news, the Institute for Supply Management released a report showing its reading on U.S. service sector activity increased by more than expected in the month of May.