US stocks moved lower on Thursday as investors weighed Middle East tensions, higher oil prices, and a fresh round of earnings. Major indexes pulled back after the previous session’s rally to record closes for the S&P 500 and NASDAQ. At the same time, mixed corporate results shaped trading across technology, industrial, and semiconductor stocks.
Wall Street’s main indexes edged lower in morning trading as investors looked for clearer signals on the US-Iran standoff. The Dow Jones Industrial Average fell 154.00 points, or 0.30%, to 49,341.55. The S&P 500 lost 6.61 points, or 0.10%, to 7,131.08, while the NASDAQ Composite dropped 57.27 points, or 0.26%, to 24,593.45.
The weaker move came one day after a strong rebound that lifted both the S&P 500 and NASDAQ to record closing highs.
Markets had rallied after President Donald Trump said the United States would extend its ceasefire with Iran. He wrote on Truth Social that Iran’s government was ‘seriously fractured’ and that the United States would delay any strike until Iranian leaders ‘come up with a unified proposal.’ However, he also said the United States would keep enforcing a blockade on maritime traffic to and from Iranian ports.
Iran rejected that move and said the Strait of Hormuz would remain closed until the blockade ended. Mahdi Mohammadi, an adviser to Parliament Speaker Mohammad Bagher Ghalibaf, described the extension as ‘meaningless’ and said it was an effort ‘to buy time for a surprise strike.’ Iran also released footage that it said showed commandos boarding a large cargo ship seized on Wednesday.
Oil prices rose for a fourth straight session, with Brent crude trading close to $103 a barrel. The increase reflected concern about the lack of progress in diplomacy and the disruption to traffic through the Strait of Hormuz. Traders also watched for any signs that Gulf oil production could remain under pressure even if shipping routes reopen.
Higher energy prices added another layer of concern for investors already tracking inflation and growth risks. Fresh US labor data showed that new jobless claims rose only marginally last week. Even so, the broader focus stayed on whether war-driven increases in oil prices could lift costs across the economy.
Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management, said, “The earnings themselves don't reflect the impact of the energy supply shock.” He added, “The oil shock is a drag on growth, and there is also a lot of structural support. The market remains comfortable that as long as there is a path towards de-escalation, it can look through higher oil prices in the short term.”
Corporate earnings remained a key market driver, although investors questioned how much current results reflect the recent jump in geopolitical risk. IBM shares fell 12% after first-quarter revenue growth slowed because of weakness in its software business. Although the company beat quarterly earnings estimates, it did not lift its full-year outlook.
IBM’s decline revived concerns about competition and disruption in software as artificial intelligence tools reshape the sector. Other technology names also moved lower. Microsoft fell 2.6%, while Adobe dropped 7.3%. As a result, the S&P 500 information technology sector lost 0.6% and became the biggest drag on the benchmark index.
Lockheed Martin shares dropped 3.7% after the company posted lower first-quarter profit. Honeywell also faced pressure after reporting first-quarter results above expectations but issuing weaker-than-expected guidance for the second quarter. Together, those moves added to the softer tone across industrial and large-cap stocks.
Texas Instruments stood out on the upside after the chipmaker forecast second-quarter revenue and profit above Wall Street expectations. Its shares rose 10.5%, giving the semiconductor space a lift even as broader indexes traded lower. The Philadelphia Semiconductor Index had already climbed 2.7% on Wednesday to a record close, showing continued investor interest in chip stocks.
Meanwhile, Cannabis stocks moved higher after the US Department of Justice reclassified FDA-approved and state-licensed marijuana as a less dangerous drug. Tilray Brands gained 5.8%, while Canopy Growth rose 6.5%. The move added another stock-specific theme to a session shaped by both geopolitics and earnings.
Moreover, the S&P 500 recorded 28 new 52-week highs and five new lows. The NASDAQ posted 74 new highs and 41 new lows. Those figures showed that while the main indexes eased, buying interest remained in selected sectors and individual stocks.
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