Stocks Decline as Iran Jitters Spur Rally in Oil: Markets Wrap
(Bloomberg) — A fresh bout of volatility rattled markets, with stocks falling as oil rose on concern about an escalation of the conflict in the Middle East that could prolong the Strait of Hormuz closure, worsening energy disruptions.
The standoff drove Brent above $105 on worries that peace talks have stalled, rhetoric is amping up and military threats are increasing. A rally in the S&P 500 paused, with the index dropping as much as 1.3% before paring its decline. In late hours, Intel Corp. surged on a strong outlook, fueling gains in chipmakers. The group notched a 17th straight advance in regular trading.
President Donald Trump ordered the US Navy to shoot any boat putting mines in the strait, while the military said it intercepted two oil supertankers that tried to evade its effort to prevent passage to and from Iran’s ports.
Later in the day, Trump said that if Iran doesn’t move oil, its infrastructure will explode. He also noted that Iran wants to make a deal, and the US has been speaking with the country. Trump also said that Americans should anticipate spending more on gasoline “for a little while.”
Meantime, Iran’s Mehr news agency reported that air defense systems were activated in parts of Tehran to counter “hostile targets” while semi-official Fars said that happened in response to small drones.
“There’s a fair bit of uncertainty when it comes to diplomacy between the two sides,” said Fawad Razaqzada at Forex.com. “Less comforting is the ongoing lack of clarity around the Strait of Hormuz. With no clear plan to reopen it, uncertainty remains elevated.”
Traders also sifted through earnings. Software shares got hit as International Business Machines Corp. and ServiceNow Inc.’s numbers failed to ease concerns about artificial-intelligence disruption. Tesla Inc. slid as plans to boost spending overshadowed better-than-expected results. Texas Instruments Inc. jumped on a solid outlook.
Meantime, Meta Platforms Inc. and Microsoft Corp. have both taken actions to trim their workforces in an effort to streamline their operations and offset AI spending.
Despite lingering geopolitical risks, the S&P 500 is poised for its best month since 2023 amid strong corporate profits and an otherwise resilient economy. Nearly 80% of the US equity benchmark’s firms have beaten first-quarter earnings estimates so far, according to data compiled by Bloomberg.
While volatility understandably increased with the onset of the Iran conflict, financial markets have proven relatively resilient, noted Adam Hetts and Oliver Blackbourn at Janus Henderson.
“Investors coalesced around the critical assumption that hostilities and the associated disruptions to the global economy would be short lived,” they said. “Our sentiment and positioning indicators showed drawdowns within several market segments reaching capitulation territory and could therefore represent attractive entry points.”
Corporate Highlights:
Warner Bros. Discovery Inc. shareholders voted overwhelmingly to approve a merger with Paramount Skydance Corp., despite widespread opposition to the deal in Hollywood. American Express Co. plans to boost spending on marketing and technology and said its customers’ spending on air travel has been slowing. Honeywell International Inc. said the war in the Middle East is hurting revenue, primarily in the process automation unit that serves the customers in the energy industry. Spirit Aviation Holdings Inc. is in “very advanced discussions” with the US government on terms of a material financing package, its lawyer Marshall Huebner said Thursday. Super Micro Computer Inc. sank after BlueFin Research wrote that the server company had “lost a significant contract” with Oracle Corp. Comcast Corp. reported first-quarter financial results that exceeded analysts’ estimates with fewer losses among broadband customers, offsetting lackluster growth at its Peacock streaming service. Lululemon Athletica Inc. slipped after naming a Nike Inc. veteran as chief executive officer, underscoring investor skepticism that the yogawear brand can recapture the growth of past years. Some of the main moves in markets:
Stocks
The S&P 500 fell 0.4% as of 4 p.m. New York time The Nasdaq 100 fell 0.6% The Dow Jones Industrial Average fell 0.4% The MSCI World Index fell 0.4% Philadelphia Stock Exchange Semiconductor Index rose 1.7% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1687 The British pound fell 0.3% to $1.3467 The Japanese yen fell 0.1% to 159.71 per dollar Cryptocurrencies
Bitcoin fell 1% to $77,694.76 Ether fell 3.2% to $2,316.35 Bonds
The yield on 10-year Treasuries advanced two basis points to 4.33% Germany’s 10-year yield was little changed at 3.01% Britain’s 10-year yield advanced three basis points to 4.94% Commodities
West Texas Intermediate crude rose 3.7% to $96.42 a barrel Spot gold fell 1% to $4,694.79 an ounce ©2026 Bloomberg L.P.
