Finance

Major U.S. indices ended Tuesday's session down by 0.6% as concerns grew regarding the stability of Middle East peace negotiations. Market sentiment was dampened after Vice President JD Vance canceled a scheduled diplomatic trip to Pakistan, which had been intended to advance talks with Iranian representatives.

Oil prices moderated on Wednesday, with Brent crude trading near $97 per barrel and U.S. benchmark crude slipping toward $88. The stabilization follows Iranian signals regarding a potential end to the U.S. naval blockade and the reopening of the Strait of Hormuz to commercial traffic.

In a recent Senate confirmation hearing, Federal Reserve chairman nominee Kevin Warsh emphasized his commitment to maintaining the central bank's independence from political influence. Despite being questioned on his relationship with the administration, Warsh stated he would act as an independent actor in steering monetary policy.

Recent retail reports show a boost from rising gasoline prices, yet broader data indicates consumers are scaling back on discretionary spending like dining out. While manufacturing continues to expand, the services sector has slipped into contraction territory for the first time in three years, raising concerns about potential stagflation.

Apple shares faced pressure following the announcement that Tim Cook will step down as CEO, leaving the future of the company's AI strategy to successor John Ternus. Meanwhile, Amazon saw gains after increasing its investment in AI firm Anthropic, signaling continued high-level capital spending in the technology sector.