US Stocks-Wall St slips as Gulf tensions send oil to over six-week high

Chipmakers rose, helped by optimism around AI. Intel gained 5.99%, while Qualcomm added 5.14% after the company struck a $4 billion deal with Amazon to develop custom AI chips.

Declining issues outnumbered advancers by a 1.41-to-1 ratio on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.

The S&P 500 posted three new 52-week highs and four new lows while the Nasdaq Composite recorded 27 new highs and 57 new lows.

At 9:47 a.m. ET, the Dow Jones Industrial Average fell 451.93 points, or 0.85%, to 52,962.32, the S&P 500 lost 29.15 points, or 0.38%, to 7,689.45 and the Nasdaq Composite lost 111.18 points, or 0.42%, to 26,395.81.

Energy was the best-performing S&P 500 sector, rising 1.49%, with Marathon Petroleum and Occidental Petroleum up 1.85% and 2.07%, respectively.

Utilities and basic materials also gained 0.7% and 0.1%, respectively.

Crypto stocks fell as bitcoin retreated from the $80,000 level. Coinbase fell 2.84% while Strategy was down 3.96%.

Some investors have said inflation readings will hold more weight for the Fed's rate trajectory, given Chair Kevin Warsh's focus on bringing prices down.

"It still seems to be a bit of a wild card out there. Warsh is not as easily readable as his predecessor Jerome Powell was," said Michael Matousek, head trader at U.S. Global Investors. With oil potentially climbing further, market volatility could persist, he added.

Traders now see a 58.4% chance of an increase in interest rates this month, according to the CME FedWatch tool.