S&P 500, Nasdaq muted as AI rally pauses, investors await Mideast news

The S&P 500 and Nasdaq traded in a narrow range Wednesday as the AI-driven rally stalled and investors monitored Middle East developments. Banking stocks fell after JPMorgan Chase CEO Jamie Dimon warned expenses could exceed estimates by $1 billion, while the Dow edged higher on rotation into healthcare and consumer stocks. The White House denied an Iranian state TV report that Tehran would restore Strait of Hormuz shipping in exchange for a U.S. military pullback.

The S&P 500 and the Nasdaq were muted on Wednesday in choppy trading, as investors took a pause from the AI-led market rally, while remaining cautious on progress in Middle East talks. Banking stocks were down after a slide of almost 2.9 percent for JPMorgan Chase after CEO Jamie Dimon warned that expenses this year could be $1 billion higher than estimated. The White House denied reports from Iran's state TV that Tehran would restore Strait of Hormuz shipping within a month in exchange for a U.S. military pullback and lifting of a naval blockade. Still, indexes traded near record highs. The Dow Jones nudged higher, lifted by a rotation into healthcare and consumer stocks. However, a pullback in chip stocks weighed on the tech-heavy Nasdaq. At 2:12 p.m. the Dow Jones Industrial Average rose 154.75 points, or 0.31 percent, to 50,616.43, the S&P 500 lost 4.13 points, or 0.05 percent, to 7,515.11 and the Nasdaq Composite lost 13.31 points, or 0.05 percent, to 26,642.87. "After such a large run-up in the markets, it's not surprising to me that there is a little bit of a pause," said Sean Clar