Stock Market Today: Major Indexes Tumble, Led Lower by Tech Stocks; Oil Prices Surge on Middle East Escalations
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Major U.S. stock indexes dropped in early trading Thursday, another busy earnings day, with tech stocks leading declines. Meanwhile, crude prices jumped on reports that the U.S. and Israel plan to renew attacks on Iran.
The tech-focused Nasdaq Composite, benchmark S&P 500, and blue-chip Dow Jones Industrial Average were down 1.5%, 0.8%, and 0.3%, respectively, in recent trading.
Yesterday, the major U.S. indexes closed higher, led by big gains for tech stocks on another busy day of earnings reports. The benchmark S&P 500 rose 0.7% for its third straight day of gains.
Chip and other AI-tied stocks sold off early Thursday. Roundhill’s Memory ETF (DRAM) dropped 4%, pulled lower by components Micron Technology (MU), Sandisk (SNDK), Seagate Technology (STX), and Western Digital (WDC), which is slated to report results after markets close today. The broader iShares Semiconductor ETF (SOXX) declined roughly 4.5%, dragged down by the likes of Advanced Micro Devices (AMD), Intel (INTC), and Nvidia (NVDA).
The Roundhill Magnificent Seven ETF (MAGS), which tracks the Magnificent Seven mega-cap tech stocks, was nearly 2% lower, hindered by a 3% drop in Tesla (TSLA) and 5% pullback in Meta Platforms (META) after they reported results late yesterday.
Shares of SpaceX (SPCX) were down 4.5% in early trading. The space, AI, and social media company led the Nasdaq 100 with an 8% advance Wednesday after it posted its first quarterly profit and CEO Elon Musk said that the board and Tesla’s formed committees to discuss a merger.
Crypto-tied stocks, including Strategy (MSTR), Mara Holdings (MARA), Coinbase Global (COIN), and Robinhood Markets (HOOD), fell sharply as the price of bitcoin declined to roughly $81,700 from overnight highs around $84,800.
In post-earnings moves, shares of Spotify Technology (SPOT) surged 10%, Lockheed Martin (LMT) jumped 8%, Procter & Gamble (PG) rose 5%, Comcast (CMCSA) gained 2.5%, Union Pacific (UNP) rose 2.5%, and Norfolk Southern (NSC) advanced 1.5%. Also, Lam Research (LRCX) was the worst-performing stock in the S&P 500 and Nasdaq 100 with a 10% pullback, International Business Machines (IBM) declined 1.5%, American Airlines Group (AAL) fell 2%, and Honeywell International (HON) was down 1%.
Oil prices jumped on reports that the U.S. and Israel were planning on resuming military strikes against Iran, as well as increased attacks by Iran-backed Houthi rebels on Saudi Arabia. U.S. benchmark West Texas Intermediate crude futures were up 2.8% to $99.85 a barrel in recent trading. Brent crude futures, the international benchmark, were 3.2% higher at $112.30.