US Stocks Edge Lower Amid Geopolitical Tensions and Mixed Corporate Earnings
US stock markets experienced a downturn on Thursday, with key indices slipping as escalating oil prices and renewed fears of a potential US-Iran conflict weighed heavily on investor sentiment. This decline occurred even as several major companies reported a mix of quarterly earnings results, highlighting the complex economic landscape.
Market Performance and Key Drivers
The S&P 500 index fell by 0.4%, marking its first decline in four consecutive sessions. The Dow Jones Industrial Average dropped 257 points, equivalent to a 0.5% decrease, while the Nasdaq composite index declined by 0.6% as of 9:35 a.m. Eastern time. The primary factors behind this market pullback included a significant surge in oil prices and geopolitical uncertainties.
Oil prices climbed more than 1.5%, with benchmark US crude surpassing $66 per barrel. This increase stemmed from growing concerns that rising tensions between Washington and Tehran could disrupt global oil supplies. President Donald Trump has been intensifying pressure on Iran over its disputed nuclear program, raising alarms that any military confrontation might constrict the global flow of oil, thereby impacting energy markets and broader economic stability.
Individual Stock Movements and Sectoral Trends
Among individual stocks, Booking Holdings tumbled 8% despite reporting quarterly profit that slightly exceeded analysts' expectations. The company, which operates platforms like Booking.com, Priceline, and OpenTable, faced investor pressure due to fears that artificial-intelligence-powered competitors could disrupt its core business operations.
Such concerns have spread across Wall Street, affecting various industries ranging from software and legal services to trucking logistics. Analysts noted that investors have recently adopted a "shoot first-ask questions later" approach toward companies perceived as vulnerable to technological disruption, reflecting heightened anxiety over innovation-driven market shifts.
Carvana declined 4.3% even after posting stronger-than-expected quarterly profit, as investors focused instead on lower-than-anticipated profit per vehicle sold, underscoring the market's selective scrutiny of financial metrics.
Walmart helped limit broader losses, rising 1.6% after fluctuating in premarket trading. The retail giant reported stronger results for the end of its fiscal year but issued a profit outlook for the coming year that fell short of analysts' estimates, demonstrating a cautious yet resilient performance.
eBay gained 2.8% after reporting better-than-expected profit and revenue. The company announced plans to acquire the secondhand fashion marketplace Depop from Etsy for approximately $1.2 billion in cash, a strategic move aimed at attracting younger customers and expanding its market reach.
Energy stocks recorded some of the strongest gains as crude prices advanced. Occidental Petroleum jumped 8.7% after delivering quarterly profit that exceeded expectations, benefiting directly from the oil price surge.
Bond Market and Economic Indicators
In the bond market, Treasury yields were largely steady following data showing fewer Americans filed for unemployment benefits last week, suggesting that layoffs may be slowing. A resilient labor market could prompt the Federal Reserve to keep interest rates unchanged for longer as policymakers await further evidence of easing inflation.
The yield on the 10-year Treasury remained at 4.09%, unchanged from late Wednesday, indicating stability in fixed-income markets amid the equity volatility.
Global Market Overview
Markets overseas presented a mixed picture, with European indexes declining after stronger performances in Asia. South Korea's Kospi surged 3.1% as trading resumed after the Lunar New Year holiday, while markets in Hong Kong and Shanghai remained closed, reflecting regional variations in economic activity and investor behavior.
