Wall Street dips, oil climbs amid raging Middle East war; airline stocks crash, Broadcom jumps 5%

Major US stock indices slipped on Thursday as oil prices climbed amid increasing disruptions to energy markets from the Middle East war.

At 11:53 a.m. ET, the Dow Jones Industrial Average fell 786.98 points, or 1.61%, to 47,952.43, the S&P 500 lost 49.45 points, or 0.72%, to 6,820.05 and the Nasdaq Composite lost 92.73 points, or 0.41%, to 22,714.76.

At the open, the Dow Jones Industrial Average fell 212.7 points, or 0.44%, to 48526.73. The S&P 500 fell 18.4 points, or 0.27%, to 6851.08, while the Nasdaq Composite dropped 100.0 points, or 0.44%, to 22707.468.

Global petroleum costs climbed after Iran’s latest series of strikes targeting Israel, American bases, and their Gulf allies. This confrontation has persisted since the United States and Israel initiated coordinated operations on February 28.

Traders are concerned regarding the potential duration of interruptions to the production and transport of crude oil and natural gas in the Middle East region. There are anxieties that a sustained rise in energy valuations might stifle the global economic growth and drive lending rates upward.

Brent crude, the international standard, jumped 3.3% to $84.05. A benchmark US crude, WTI, advanced 4.3% to $77.90.

“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute, according to Associated Press.

In the bond market, the Treasury yield rose for a fourth straight day. The yield on the 10-year Treasury climbed to 4.14% from 4.09% late on Wednesday.

Key Stock Movers

Stocks of American Airlines shed 4.4%, United Airlines slid 4.8% and Delta Air Lines sank 4.5%.

Broadcom stock outperformed the market, rising 5% after the chip maker reported stronger quarterly earnings than analysts expected.

Shares of American Eagle Outfitters tumbled 12.4% despite the firm reported stronger quarterly profit and revenue than analysts expected.

Energy stocks gained, with ConocoPhillips and Valero Energy up about 2% each.

Trade Desk shares rallied 22.5% after a report said that OpenAI held early talks with the advertising technology firm to sell ads.

Bullion Market

Gold prices retreated on Thursday as rising US Treasury yields and a stronger US dollar pressured gains.

As of 9:48 a.m. ET (1448 GMT), spot gold dropped 0.7% at $5,099.48 per ounce. US gold futures for April delivery edged down 0.5% at $5,108.70.

Among other metals, spot silver declined 1.2% to $82.41 per ounce. Platinum lost 0.6% to $2,136.09, while palladium fell 2.4% to $1,639.96.