Stock Markets Retreat as Oil Hovers Near $100 Following Iran Tensions
U.S. stock markets fell on May 7 as oil prices climbed toward $100 per barrel following renewed military tensions in the Strait of Hormuz. The Dow and S&P 500 declined while tech stocks held up, with investors nervous about further Middle East escalation.
Market Pullback on Energy Concerns
Market Performance: The Dow and S&P 500 fell on Thursday, May 7, pulling back from record highs set the previous day. The Nasdaq held near record territory, with tech giants Nvidia, Microsoft, and Tesla each gaining more than 1%.
Energy Markets: Oil prices hovered near $100 per barrel, with West Texas Intermediate crude around $91-93. The market remains volatile due to uncertainty about Strait of Hormuz closure and ongoing U.S.-Iran tensions.
Sector Performance: Tech and industrials outperformed, but energy and utilities declined significantly. The 10-year Treasury yield climbed to 4.393%, reflecting broader economic uncertainty.
Earnings Updates: Airbnb reported 18% year-over-year revenue growth to $2.7 billion and boosted its 2026 guidance. Arm Holdings fell 7.3% despite beating earnings expectations, citing unmet demand for its new AGI CPU. AMD soared 18.6% on strong Q2 guidance.
Microsoft Concern: Microsoft is reportedly considering delaying or abandoning its 2030 renewable energy goal due to soaring AI data-center costs, signaling that the tech industry's climate commitments are being challenged by AI infrastructure demands.