Wall Street stock indices declined on Thursday, after a strong rally in the previous session, as anxieties intensified over the stability of the Middle East truce.
As of 10 a.m. Eastern Time, the S&P 500 slipped 0.1%, the Dow Jones Industrial Average was down 0.1%, and the Nasdaq Composite was 0.2% lower.
At the opening bell, the Dow Jones Industrial Average fell 69.3 points, or 0.14%, to 47,840.63. The S&P 500 fell 0.9 points, or 0.01%, to 6,783.69, while the Nasdaq Composite rose 11.4 points, or 0.05%, to 22,646.353.
reacted sharply, with crude oil prices climbing and the majority of global stock indices retreated on Thursday.
Investors are currently assessing the likelihood of a precarious ceasefire holding and the potential reopening of the Strait of Hormuz, a vital passage for rehabilitating oil and gas deliveries.
The primary US oil benchmark, West Texas Intermediate, recovered by more than 5% to reach near $100 per barrel, while Brent North Sea Crude increased by 3.5% to $98.03 per barrel.
The viability of the truce remains questionable, primarily due to Israel’s persistent military operations against Iran-supported Hezbollah forces in Lebanon. Israeli aerial strikes on Wednesday resulted in over 200 fatalities and more than 1,000 injuries.
Furthermore, Tehran has declared its intention to collect transit fees from vessels navigating through the Hormuz passage.
“Oil prices will likely remain elevated and choppy until a more permanent agreement is struck between all parties,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown.
In economic indicators, a report showed an underlying measure of inflation was slightly hotter in February.
A separate report said that more US workers applied for jobless claims last week.
Following the reports, the yield on the 10-year Treasury rose to 4.31% from 4.29% late on Wednesday.
Key Stock Movers
Simply Good Foods stock tumbled 15.1% after the owner of Quest and Atkins brands reported a worse drop in quarterly revenue than expected.
Constellation Brands shares soared 5.3% after the liquor maker reported stronger quarterly results than expected.
Among megacaps, Microsoft and Apple stocks fell 1.7% and 0.7%, respectively. gained 1.7%.
Applied Digital shares dropped 7.1% after the data center operator’s third quarter net loss widened.
Bullion Market
Gold prices rose on Thursday on a weaker US dollar.
At 9:16 a.m. ET (1316 GMT), spot gold was up 0.9% at $4,755.99 per ounce. US gold futures edged up 0.1% to $4,781.80.
Among other metals, spot silver gained 0.5% to $74.46 per ounce, platinum added 0.8% to $2,046.54 and palladium edged 0.4% down to $1,548.23.