Wall Street moved lower on Thursday as oil prices climbed after renewed Middle East concerns. Investors watched Iran-related news, Treasury yields, corporate earnings, and fresh economic data. The market also weighed NVIDIA’s results, Walmart’s outlook, and a sharp rally in quantum computing stocks.
US stocks fell after Brent crude jumped above $107 a barrel. The move followed a report that Iran’s Supreme Leader Ayatollah Mojtaba Khamenei ordered near-weapons-grade uranium to remain in the country.
The report reduced hopes for quick progress in talks between Washington and Tehran. It also renewed concern about oil supply risks near the Strait of Hormuz, a key route for global crude shipments.
At 9:58 a.m. ET, the Dow Jones Industrial Average slipped 24.51 points to 49,987.34. The S&P 500 fell 22.83 points to 7,410.68, while the NASDAQ Composite lost 119.67 points to 26,150.69.
Treasury yields also moved higher as traders priced in fresh inflation risks. The 10-year US Treasury yield rose to about 4.61%, resuming its recent climb after easing on Wednesday.
Higher oil prices can raise transport, production, and consumer costs. Therefore, investors watched whether the Federal Reserve would keep rates higher for longer if inflation pressure stays firm.
Market breadth also weakened. Declining stocks outnumbered advancing shares by 2.35-to-1 on the NYSE and by 1.7-to-1 on the NASDAQ.
NVIDIA shares slipped after its quarterly update failed to boost investors. The company reported strong guidance and announced an $80 billion share buyback, but the stock still moved lower.
Investors now question how long NVIDIA can keep its rapid growth pace. Dan Coatsworth of AJ Bell said, “The market’s attention is now focused on how long NVIDIA can sustain this momentum.”
Walmart also dragged on sentiment. The retailer fell after it kept its annual targets and forecast second-quarter profit below analyst estimates.
Sam Stovall of CFRA Research said, “The guidance is what has caused investors to be concerned that finally we are seeing the effects of high oil prices and inflation on retail expectations.”
New US data showed that weekly jobless claims fell. The reading pointed to a steady labor market, even as households face higher prices and tighter financial conditions.
US manufacturing activity also rose to a four-year high in May. Businesses increased inventories as they prepared for possible shortages and rising costs linked to the Iran conflict.
The data gave the Federal Reserve more room to focus on inflation risks. As a result, investors remained cautious toward growth stocks and rate-sensitive sectors.
Quantum computing stocks moved sharply higher after reports that the Trump administration would fund several companies in exchange for stakes.
IBM rose as investors reacted to its reported role in the funding plan. GlobalFoundries, D-Wave Quantum, Rigetti Computing, and Infleqtion also posted strong gains.
Elsewhere, Intuit plunged after it lowered its annual revenue forecast for TurboTax and announced plans to cut 17% of its full-time workforce.
Investors also monitored SpaceX after the company unveiled its IPO filing. The filing gave markets a closer look at Elon Musk’s spending plans as the company expands its AI-related strategy.
Overall, Wall Street remains caught between rising geopolitical tensions, inflation worries, and mixed corporate signals. With oil prices climbing, Treasury yields rising, and investors closely tracking Federal Reserve expectations, market volatility could remain elevated in the near term.
Also Read: Goldman Sachs Leads SpaceX IPO Underwriters Ahead of NASDAQ Listing
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