Financial Markets                      06/24 15:36

   

   NEW YORK (AP) -- Stocks wavered to a mixed close on Wall Street Wednesday as 
technology stocks once again weighed down the market.

   Declines for several influential tech heavyweights, including Microsoft, 
pulled the broader market lower even though most stocks in the S&P 500 gained 
ground. That was also the case on Tuesday, when tech stocks pulled the market 
lower despite broader gains elsewhere.

   The S&P 500 fell 7.24 points, or 0.1%, to 7,358.22, despite nearly 2 out of 
every 3 stocks gaining ground. The Dow Jones Industrial Average, which is less 
weighted with tech stocks, rose 182.06 points, or 0.4%, to 51,848.90.

   The tech-heavy Nasdaq composite fell 110.40 points, or 0.4%, to 25,476.64.

   A 2.3% drop in Microsoft was the heaviest weight on the market. Oracle 
slumped 4.6%.

   Many large tech companies have been behind Wall Street's record-setting run 
throughout the year, but analysts have warned their valuations may have become 
stretched.

   "The next phase of the AI investment cycle is beginning to collide with 
market discipline," said Jason Vaillancourt, chief portfolio strategist at 
Columbia Threadneedle, in a research note.

   Google's parent company Alphabet slipped 0.2%. The company is replacing 
Verizon in the Dow on Monday. The company's inclusion in the S&P 500 means more 
to investors, however, because 401(k) accounts are much more likely to include 
an S&P 500 index fund than anything tied to the Dow.

   Alphabet will become the fifth Magnificent 7 company to join the Dow. The 
others are Apple, Amazon, Microsoft and Nvidia.

   Oil prices continued slipping as the U.S. and Iran negotiate a possible end 
to their war. Brent crude, the international standard, fell 3.8% to $73.87 a 
barrel. It has been trading below $80 in recent days but is still above the 
roughly $70 per barrel it was trading at in late February before the war began. 
U.S. crude prices fell 3.9% to $70.34 a barrel.

   Oil companies had some of the biggest losses. Exxon Mobil fell 2% and 
Chevron lost 2.6%.

   Some of the bigger winners on Wall Street included homebuilders following 
approval of legislation beneficial to the industry. KB Home surged 16.7% and 
D.R. Horton jumped 6.7%.

   Treasury yields mostly fell, removing some pressure from stocks. The yield 
on the 10-year Treasury fell to 4.40% from 4.50% late Tuesday. The yield on the 
2-year Treasury eased to 4.15% from 4.16%.

   Treasury yields are still elevated from earlier in the year, especially the 
2-year Treasury, which more closely tracks anticipated action from the Federal 
Reserve. The central bank has signaled that it is considering raising its 
benchmark interest rate by the end of the year. Wall Street is forecasting at 
least one hike to interest rates by December, according to data from CME Group.

   The Fed is worried about stubborn inflation, which had been rising 
throughout the year as tariffs raised the costs for a wide range of goods. A 
shock to energy prices because of the U.S. war with Iran worsened inflation. 
Gasoline prices surged and shipping costs rose. The impact is expected to 
linger even as oil and gasoline prices fall.

   The central bank will get an update on inflation Thursday, when its 
preferred measure for prices is released. Economists expect the Personal 
Consumption Expenditures price index, or PCE, to show that prices rose 4.1% in 
May. That would be the highest level in three years.

   "Thursday's PCE is set to take on greater importance for markets, especially 
since Federal Reserve Chair (Kevin) Warsh was emphatic in last week's meeting 
about the central bank's desire to achieve price stability," wrote Rick 
Gardner, chief investment officer at RGA Investments, in a research note.

   Gold prices fell 3.4% to settle at $4,008.80 an ounce. Earlier in the day, 
gold briefly traded below $4,000, and hasn't settled below that level since 
November. Gold was above $5,000 an ounce earlier in the year. The precious 
metal is often seen as a barometer of the appetite for risk among investors, 
with more buying at times of increased anxiety and more selling as anxiety 
eases.

   Markets were mixed in Europe.

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   AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

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