Nasdaq, S&P end lower as tech stocks fall

June 24 (Reuters) – The Nasdaq and S&P 500 closed lower on Wednesday, dragged by tech stocks on nagging concerns about high-flying valuations, but falling crude prices boosted airlines and other travel stocks and the Dow finished higher.

Oil prices fell to their lowest since the start of the Iran war as more tankers were expected to move out of the Strait of Hormuz. U.S. President Donald Trump said Iran had told Washington that no tolls were being sought.

The S&P 500 passenger airlines index rose.

Tech stocks slipped, intensifying the focus on chipmaker Micron Technology‘s results due after the bell. The stock has surged more than 200% in 2026 but fell on Wednesday.

Cerebras Systems tumbled after the chip designer forecast full-year profit margins would drop below first-quarter figures in its debut report after going public. Also weighing on the stock, OpenAI announced its own in-house inference chip called Jalapeño.

Concerns around debt-backed spending by hyperscalers and mounting fears of a more hawkish Federal Reserve have fueled the market downturn this week that has erased more than $1 trillion in market value from the Nasdaq 100.

“The Middle East conversation is wrapping up … energy prices are coming off,” said Michael Monaghan, partner and portfolio manager at Founder ETFs. “But you continue to have the AI CapEx buildout where, for some reason, people like the recipients of the spend and have been punishing those doing the spending.”

According to preliminary data, the S&P 500 lost 5.86 points, or 0.08%, to end at 7,358.72 points, while the Nasdaq Composite lost 104.58 points, or 0.41%, to 25,482.46. The Dow Jones Industrial Average rose 187.97 points, or 0.36%, to 51,854.81.

Homebuilders soared after Trump canceled a planned signing of bipartisan legislation aimed at speeding up availability of affordable housing. Hovnanian Enterprises, PulteGroup and Toll Brothers all rose.

Among other movers, Hertz tumbled after the car-rental firm said it expects second-quarter adjusted core earnings near the lower end of its forecast range and announced a proposed offering of $100 million of common stock.

Traders are adding to bets of a second rate hike from the Fed by the end of December, according to CME Group’s FedWatch tool. Previously, the market expected a single 25-basis-point rise.

The closely watched Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, could offer insight on the monetary policy path on Thursday.

(Reporting by Abigail Summerville in New York, and Twesha Dikshit and Joel Jose in Bengaluru; Editing by David Gregorio)