The S&P 500 fell 7.24 points (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 (0.4%) to 51,848.90.

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.

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.

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.

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. A 2.3% drop in Microsoft was the heaviest weight on the market. Oracle slumped 4.6%. Exxon Mobil fell 2% and Chevron lost 2.6%. 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.

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