The U.S. stock market is edging back from its all-time high Thursday following mixed profit reports from Tesla and other big companies. Oil prices, meanwhile, are swinging on continued uncertainty about what will happen next in the war with Iran.
The S&P 500 slipped 0.2 per cent following a big rally that erased all its losses because of the war and then carried it to records. The Dow Jones Industrial Average was down 238 points, or 0.5 per cent, as of 9:35 a.m. Eastern, and the Nasdaq composite was 0.3% lower after setting its own record.
Tesla dragged on the market and fell 2.2 per cent even though it reported better results for the latest quarter than analysts expected. Investors may be focusing instead on Tesla’s increased forecast for spending this year, as it builds factories to make robots and other products.
“You should expect to see a very significant increase in capital expenditure,” Elon Musk said.
ServiceNow dropped even more, 14.7 per cent, even though its results for the latest quarter matched analysts’ expectations. The company has been under pressure, along with much of the broad software industry, because of worries that rivals powered by artificial-intelligence technology could undercut its business. Analysts said investors may also have been underwhelmed by its forecast for a declaration in growth for an important measure of revenue.
Railroad operator CSX helped limit Wall Street’s losses after saying it hauled more shipments last quarter and cut its expenses. The better-than-expected performance helped its stock chug 5.8 per cent higher.
In the oil market, prices swung between gains and losses as uncertainty continues about what will happen with the Strait of Hormuz. A ceasefire is still in place between the United States and Iran, but oil tankers aren’t able to get through the narrow waterway to exit the Persian Gulf to reach customers.
The U.S. military on Thursday seized another tanker associated with the smuggling of Iranian oil, ratcheting up the standoff a day after Iran’s paramilitary Revolutionary Guards took control of two vessels in strait. U.S. President Donald Trump also said Thursday he ordered the U.S. military to “shoot and kill” small Iranian boats that deploy mines to choke traffic through the strait.
The price for a barrel of Brent crude, the international standard, added 0.8 per cent to $102.70 after bouncing between roughly US$101 and $106 overnight. It’s unclear whether U.S.-Iran peace talks, previously hosted by Pakistan, would resume anytime soon.
In stock markets abroad, indexes fell across much of Europe and Asia. Hong Kong’s Hang Seng fell 0.9 per cent, and Japan’s Nikkei 225 sank 0.7 per cent for two of the bigger losses.
South Korea’s Kospi climbed 0.9 per cent after the government reported better-than-expected economic growth for the start of the year, boosted by strong exports, particularly of computer chips used in the AI boom. Semiconductor supplier SK Hynix said its revenue for the latest quarter jumped more than analysts expected largely because of AI-related demand.
In the bond market, the yield on the 10-year Treasury edged down to 4.29 per cent from 4.30 per cent late Wednesday.
A report in the morning said slightly more U.S. workers applied for unemployment benefits last week, but the number is still at a historically healthy level.
Chan Ho-him And Matt Ott, The Associated Press.