US Stock Market Pulls Back from Record Highs as Oil Surges and Middle East Tensions Simmer
The S&P 500 and Nasdaq fell on April 23 as investors took profits after reaching all-time highs, with oil prices jumping on renewed Middle East conflict concerns. Software earnings disappointments and uncertainty about the Iran peace deal drove the selloff.
Market Performance
The S&P 500 traded down 0.41% to close at 7,108.40, after earlier hitting a new all-time intraday high, while the Nasdaq Composite declined 0.89% to finish at 24,438.50. The Dow Jones Industrial Average lost 179.71 points, or 0.36%, to finish at 49,310.32.
What Drove the Decline
Stocks pulled back on Thursday, led by a drop in software and higher oil prices, as investor uncertainty toward the trajectory of the Iran war hovered over the market. Shares of IBM and ServiceNow tumbled more than 8% and almost 18%, respectively, after the companies posted their latest quarterly results, with IBM maintaining its full-year guidance despite beating on the top and bottom lines.
Oil Price Surge
Oil prices spiked in midday Thursday trading, with Western Texas Intermediate crude futures jumping nearly 4%, crossing $96.50, and Brent crude futures up 3.5%, above $105 per barrel. The jump came after Israel's N12 news reported that Iran's parliament speaker Mohammad Bagher Ghalibaf resigned from the negotiating team with the U.S.
Sector Spotlight: Airlines
American Airlines said surging fuel costs are weighing on its full-year outlook, with the carrier now expecting an adjusted full-year loss of 40 cents per share to earnings of $1.10 per share, significantly lower than its forecast for earnings of $1.70 to $2.70 per share in January.