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Indexes down: Dow 0.33%, S&P 500 0.09%, Nasdaq 0.20%
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Boeing ( BA ) shares fall after Air India plane crash
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Oracle up after raising its annual revenue forecast
(Updates after markets open)
By Kanchana Chakravarty and Sukriti Gupta
June 12 (Reuters) - Wall Street's main indexes slipped
on Thursday as signs of rising tensions in the Middle East hurt
risk sentiment and investors sought more clarity on Washington's
recent trade deals with China.
Boeing ( BA ) declined 4.7% after an Air India 787-8
Dreamliner jet crashed minutes after taking off in India's
western city of Ahmedabad, killing more than 200 people.
Underscoring increased volatility in the Middle East,
President Donald Trump said on Wednesday U.S. personnel were
being moved out of the region as it could be a "dangerous place"
and the United States would not allow Iran to have a nuclear
weapon.
"The clearing out of our embassies in the Middle East of
non-essential employees sends a signal that we're anticipating
some turbulent times," said Kim Forrest, chief investment
officer at Bokeh Capital Partners.
A senior Iranian official said on Wednesday Tehran will
strike U.S. bases in the region if nuclear negotiations fail and
conflict arises.
China on Thursday affirmed a trade deal with the U.S.,
saying both sides needed to abide by the consensus. Traders are
still waiting for more details on the trade framework discussed.
At 10:06 a.m. ET, the Dow Jones Industrial Average
fell 140.49 points, or 0.33%, to 42,725.28, the S&P 500
lost 5.58 points, or 0.09%, to 6,017.36 and the Nasdaq Composite
lost 39.52 points, or 0.20%, to 19,576.35.
Five of the 11 major S&P 500 sub-sectors fell.
Communication services dropped the most, with an about
0.7% decline, while utilities gained 0.8%.
Alphabet declined 1.1%, while Nvidia ( NVDA )
nudged 0.3% higher.
Among other movers, Oracle shares rose 12.1% after
the cloud service provider raised its annual revenue growth
forecast.
U.S.-listed shares of gold miners also advanced, as bullion
prices hit a one-week high. Newmont ( NEM ) gained 2.4%, Harmony
Gold was up 2.1% and AngloGold Ashanti ( AU ) rose 5.2%.
After a tame consumer price report on Wednesday,
softer-than-expected producer price data and largely unchanged
initial jobless claims helped reduce investor jitters around
tariff-driven price pressures.
Traders are pricing in 53.7 basis points of rate cuts by
year-end, per data compiled by LSEG. They are penciling in a 60%
chance of a 25 bps cut in September, according to the CME
Group's FedWatch tool.
Policymakers are widely expected to keep rates unchanged
next week.
With investors increasingly expecting Trump to reach
favorable trade agreements with several countries in the coming
weeks, the benchmark S&P 500 index is just 2.1% below its
record high touched in February.
The tech-heavy Nasdaq is about 2.9% from record
levels hit in December.
Goldman Sachs trimmed its U.S. recession probability to 30%
from 35% on easing uncertainty around Trump's tariff policies.
Declining issues outnumbered advancers by a 1.35-to-1 ratio
on the NYSE and by a 2.03-to-1 ratio on the Nasdaq.
The S&P 500 posted four new 52-week highs and three new lows
while the Nasdaq Composite recorded 24 new highs and 39 new
lows.
(Reporting by Kanchana Chakravarty and Sukriti Gupta in
Bengaluru; Editing by Devika Syamnath)