Oil Prices Surge Amid Ongoing Iran Conflict
US stocks declined slightly on Thursday as oil prices rose and companies continued to report their quarterly earnings. The S&P 500 fell 0.2%, while the Dow Jones Industrial Average dropped 363 points, or 0.7%. This comes after a strong start to the week, with both indices setting records.
The Toronto Stock Exchange's S&P/TSX Composite index was down 64.97 points, or 0.18%, at 36,081.45. Clark Bellin, president and chief investment officer at Bellwether Wealth, noted that August can be a volatile month for stocks. Despite this, overall profits from companies have helped alleviate concerns about the market being overpriced.
Roughly 85% of companies in the S&P 500 have reported their results, with earnings growth shaping up to be the strongest since 2021. This has contributed to a steady increase in the price of Brent crude, which rose 4.3% to $82.88 due to ongoing uncertainty over the US-Iran conflict.
On the corporate front, Warner Bros. Discovery and Molson Coors saw gains after reporting earnings that beat expectations. However, Honeywell Aerospace fell 19.2% after its results fell short of forecasts. AppLovin slumped 19.6% following mixed financial results for its most recent quarter.