The S&P 500 finished nearly unchanged and edged down by less than 0.1%, a day after slipping from its latest all-time high. The Dow Jones Industrial Average dropped 280 points, or 0.6%, while the Nasdaq composite inched up by less than 0.1%.

Brent crude oil for July delivery surged 5.8% to $110.44 per barrel amid heightened tensions, peaking at $111.84 later. The most active contract hit a war-high of $119.50 last month, with June's briefly topping $120. President Trump's U.S. blockade on Iranian ships has spiked prices, prompting Iran to close the Strait of Hormuz to global tankers.

High oil prices influenced the Federal Reserve to pause interest rate cuts Wednesday, balancing economic boosts against inflation risks. Three Fed officials opposed hints of future cuts; traders now expect steady rates through 2026, shifting bets from cuts to possible hikes. U.S. stocks stayed near records as firms beat Q1 2026 profit forecasts.

Visa jumped 8.3% after delivering stronger results than analysts expected, and CEO Ryan McInerney said consumer spending remained resilient in the quarter. Starbucks climbed 8.4% after likewise reporting better results than expected, while saying customers spent more at each visit, particularly at its North American stores. GE Healthcare Technologies dropped 13.2% after falling short of analysts' forecasts.

Robinhood Markets sank 13.2% after reporting growth in profit that was not as strong as analysts expected. Booking Holdings swung between losses and gains and finished with a gain of 0.3% after the online travel company reported better results than analysts expected. The company behind Booking.com, Priceline and other brands said it expects the conflict to continue affecting its business through the end of June.

In stock markets abroad, indexes fell in Europe following a stronger finish in Asia. Hong Kong's Hang Seng jumped 1.7% for one of the world's strongest moves while London's FTSE 100 fell 1.2%.

Treasury yields climbed in the bond market immediately afterward, adding to gains from earlier in the day due to rising oil prices. The yield on the 10-year Treasury rose to 4.41% from 4.36% late Tuesday. The two-year Treasury yield, which more closely tracks expectations for Fed action, climbed more. It jumped to 3.93% from 3.84% which is a notable move for the bond market.

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