US stocks traded on a mixed note in early trade on Wednesday as weakness in semiconductor stocks dragged the Nasdaq Composite and the S&P 500 lower, while the Dow Jones Industrial Average managed modest gains despite a sharp rally in crude oil prices.
As of 9:32 a.m. EDT, the Dow Jones Industrial Average was up 93.24 points, or 0.18%, at 52,317.88. The S&P 500 slipped 9.94 points, or 0.13%, to 7,499.26, while the Nasdaq Composite declined 120.61 points, or 0.47%, to 25,716.60.
The cautious start follows losses in US stock futures earlier in the day after oil prices surged on escalating geopolitical tensions in the Middle East.
ALSO READ: Oil Prices Spike: Brent Crude Tops $95 A Barrel For First Time In Six Weeks
Brent crude climbed about 3% to trade above $94 a barrel, briefly crossing the $95 mark for the first time in more than a month. US West Texas Intermediate crude also gained around 3% to trade above $86 a barrel.
Oil prices extended gains after the 11th consecutive round of US strikes against Iran, with US Secretary of State Marco Rubio signalling that Washington would continue military pressure if Tehran remained unwilling to negotiate.
"If they're serious, we're serious. If they're not, then we will do what is necessary to protect our interests and also the interests of our allies," Rubio said.
Rubio also said US forces would continue to safeguard commercial shipping through the Strait of Hormuz, a key global energy transit route.
ALSO READ: Trump Draws Red Line For Iran: 'One Bridge Or Power Plant For Every Ship Hit In Hormuz'
The spike in crude prices renewed concerns that higher energy costs could slow progress on inflation, potentially complicating the US Federal Reserve's interest rate path.
According to the CME FedWatch Tool, traders are pricing in a 27% probability of a Federal Reserve rate hike this month and a 70% chance of at least a 25-basis-point increase in September.
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