US Stocks Slide Amid Earnings Disappointments and Middle East Tensions

The US stock market closed lower on Thursday as investors digested a fresh round of corporate earnings and developments in the Iran war. The S&P 500 fell by 0.18% to 7,709.96, while the Nasdaq Composite eased by 0.06% to 26,348.35. The Dow Jones Industrial Average dropped 464.02 points, or 0.85%, to 53,885.

Several companies disappointed investors with their quarterly results, including Salesforce, which fell 3% after announcing changes to its senior leadership team. Memory and technology stocks also came under pressure, with Sandisk dropping more than 6% after its fiscal fourth-quarter results failed to impress investors. Western Digital plummeted by 13% after issuing a weaker-than-expected first-quarter outlook, despite fourth-quarter results beating expectations.

Cboe's JJ Kinahan noted that markets appeared to be taking a breather following an earnings-driven stretch of trading, where stronger-than-expected profits and revenue do not necessarily support share prices when accompanied by softer guidance. The broader earnings season remains a key driver for equities, with investors increasingly focused on company outlooks and whether earnings growth can support valuations.

Oil prices moved higher as investors monitored developments in the Iran war and negotiations around reopening the Strait of Hormuz. This supported energy stocks but raised concerns that higher crude prices could add to inflationary pressures and keep interest rates elevated.