US stocks edge back from their records as oil prices swing higher
U.S. stocks dipped early Thursday after a powerful rebound that erased war-related losses and pushed major indexes to fresh highs. At the same time, oil prices seesawed as traders assessed escalating risks tied to tensions with Iran.
By 9:35 a.m. Eastern, the S&P 500 slipped 0.2%. The Dow Jones Industrial Average fell 238 points, or 0.5%, while the Nasdaq Composite eased 0.3% after setting a record in the previous session.
Corporate movers
Tesla weighed on the broader market, sliding 2.2%. The electric-vehicle maker topped Wall Street’s earnings expectations for the latest quarter, but investors homed in on its plan to boost capital spending this year as it expands factories and invests in robotics and other initiatives. Management signaled a significant step-up in outlays, a shift that can pressure near-term cash flow even if it aims at future growth.
ServiceNow tumbled 14.7%. While quarterly results aligned with analysts’ estimates, sentiment across the software sector remains fragile amid concerns that competitors leveraging artificial intelligence could pressure established players. Investors also appeared disappointed by the company’s outlook, which pointed to a deceleration in growth for a closely watched revenue metric.
On the upside, CSX helped cushion broader losses. The railroad operator reported an increase in shipments and tighter cost controls, producing results that topped forecasts and sending its shares up 5.8%.
Oil prices swing on Strait of Hormuz uncertainty
Crude prices fluctuated between gains and losses as the market gauged the latest developments around the Strait of Hormuz, a critical chokepoint for global energy flows. Although a ceasefire remains in place between the United States and Iran, tanker traffic through the narrow passage has been disrupted, complicating exports from the Persian Gulf.
U.S. forces seized another tanker tied to Iranian oil smuggling, heightening a standoff that intensified after Iran’s Revolutionary Guards took control of two vessels in the strait the prior day. In Washington, President Donald Trump said he directed the U.S. military to use lethal force against small Iranian boats deploying mines intended to impede shipping.
Brent crude, the international benchmark, added 0.8% to $102.70 a barrel after swinging overnight between roughly $101 and $106. It remains unclear when, or if, previously arranged U.S.-Iran talks, once hosted by Pakistan, might resume.
Overseas markets
Stocks were broadly weaker across Europe and Asia. Hong Kong’s Hang Seng fell 0.9%, while Japan’s Nikkei 225 declined 0.7%.
South Korea’s Kospi bucked the trend, rising 0.9% after the government reported stronger-than-expected growth to start the year, powered by resilient exports. Demand tied to artificial intelligence was a key driver, with chipmaker SK Hynix posting revenue that topped projections largely on AI-related orders.
Bonds and the U.S. economy
In the bond market, the 10-year Treasury yield edged down to 4.29% from 4.30% late Wednesday, reflecting a modest bid for safety and slightly softer rate expectations.
Labor data indicated a small increase in weekly applications for unemployment benefits, but filings remain near historically low levels. The figures suggest the job market is cooling only gradually, a dynamic that could help keep consumer spending supported while giving the Federal Reserve more time to assess inflation’s trajectory.
What’s next
With major indexes hovering near records, investors are digesting mixed corporate updates: some companies are delivering solid results and cost discipline, while others face questions about spending plans, competitive pressures from AI, and growth durability. Meanwhile, geopolitical uncertainty is injecting fresh volatility into energy markets, which can ripple through inflation and interest-rate expectations.
Near-term catalysts include additional earnings reports, readings on labor and inflation, and any new signals from policymakers. For now, the balance between resilient economic data and geopolitical risk is keeping markets in a cautious, range-bound mood.
