Wall Street drops as crude oil gains amid uncertainty over Mideast conflict de-escalation
As of 12:24 p.m. Eastern Time, the S&P 500 sank 1%, the Dow Jones Industrial Average was down 0.7%, and the Nasdaq Composite was 1.3% lower.
Major US stock indices dropped on Thursday, as crude oil prices gained amid uncertainty over de-escalation in the Middle East conflict.
As of 12:24 p.m. Eastern Time, the S&P 500 sank 1%, the Dow Jones Industrial Average was down 0.7%, and the Nasdaq Composite was 1.3% lower.
At the open, the Dow Jones Industrial Average fell 84.8 points, or 0.18%, to 46,344.64. The S&P 500 fell 36.0 points, or 0.55%, to 6,555.86, while the Nasdaq Composite dropped 236.7 points, or 1.08%, to 21,693.175.
US President Donald Trump has cautioned Iran to begin peace negotiations "before it is too late," yet Tehran openly dismissed American proposals.
Continuous strikes persist on both sides, with Israel asserting it eliminated the head of the Iranian Revolutionary Guards' naval forces.
Brent North Sea crude, the international benchmark jumped 4.4% to $106.67 per barrel on Thursday morning, while the main US oil contract, West Texas Intermediate, rose 3.9% to $93.81.
The intensifying Middle East war has derailed the global economy's robust growth trajectory, the OECD cautioned on Thursday, noting that a blockade of the Strait of Hormuz risks triggering a significant and sharp escalation in worldwide inflationary pressures.
"Hearing a lot of different things come out, you have the market trying to figure out exactly what's going on. We're watching oil prices ... We're still a little bit cautious there because some of the downside scenarios aren't good for the global economy," said Jack Herr, primary investment analyst at GuideStone, according to Reuters.
"But overall if we can get a quick resolution of this thing, the backdrop for another good year in the market is there with some of the fundamentals and growth numbers we're seeing," added Herr.
In the bond market, the yield on the 10-year Treasury rose to 4.35% from 4.33% late on Wednesday.
Key Stock Movers
Chip stocks were hit hard on Thursday after Google parent Alphabet highlighted its new research showed more efficient ways to use AI-related storage.
Shares of Micron Technology lost 3.2%, with Western Digital falling 2.7% and Sandisk slipping 4.7%.
Meta Platforms and Alphabet dropped 3.2% and 2%, respectively.
The Philadelphia SE Semiconductor index lost almost 2%.
Olaplex stock climbed 50% after Germany's Henkel agreed to acquire the hair-care brand in a $1.4 billion deal.
US-listed gold miners Sibanye Stillwater and Harmony Gold lost 2.2% and 1.1%, respectively, following more than 1% fall in bullion prices.
Bullion Market
Gold prices fell on Thursday, as US dollar strengthened amid Middle East hostilities.
By 9:26 a.m. ET (1326 GMT), spot gold was down 1.2% at $4,450.64 per ounce. US gold futures for April delivery lost 2.3% to $4,447.60.
Among other metals, spot silver fell 3.7% to $68.60, platinum sank 3.1% at $1,860.10, while palladium shed 4% to $1,366.75.
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With a distinguished career spanning nearly two decades at the highest levels of financial journalism, Rajendra Kumar Saxena stands as a cornerstone of the editorial leadership team at Livemint.com. In his current capacity as Content Editor, he is responsible for managing the comprehensive editorial lifecycle of the publication. His role is multifaceted, encompassing the strategic selection of high-impact stories, original reporting, and meticulous editing. <br> Furthermore, Rajendra is instrumental in executing a sophisticated Search Engine Optimization (SEO)-driven content strategy, ensuring that the platform's digital content reaches a global audience while maintaining the highest standards of journalistic integrity and accuracy prior to publication. <br> Rajendra’s professional journey is characterized by a profound expertise in a wide array of critical sectors. His analytical depth covers global economics, commodities, and stock market dynamics (across both Indian and United States landscapes). <br> Beyond the financial markets, he possesses a keen understanding of political affairs, banking and finance, foreign affairs, and the rapidly evolving technology sector. <br> His eighteen years journey in financial and business journalism includes a significant tenure at Financialexpress.com and freelance contributions to The Hindu. <br> Currently based in Delhi, Rajendra holds a Master of Journalism degree from the prestigious Makhanlal Chaturvedi National University of Journalism and Communication (MCNUJC). His blend of academic rigor and decades of on-the-ground experience makes him a leading voice in navigating the complexities of today’s financial world.
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