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US STOCKS-Wall Street dips as Middle East tensions rise; Boeing drops
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US STOCKS-Wall Street dips as Middle East tensions rise; Boeing drops
Jun 12, 2025 8:05 AM

(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window)

*

Indexes down: Dow 0.33%, S&P 500 0.09%, Nasdaq 0.20%

*

Boeing ( BA ) shares fall after Air India plane crash

*

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)

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