US stocks close lower as investors eye Middle East talks, earnings
Investors digest the latest round of corporate earnings and look for signs of progress toward a peace deal between the US and Iran.
US stocks experienced a decline on Thursday, as investors analyzed the latest corporate earnings and awaited developments in US-Iranian peace discussions. Despite the overall negative performance, the S&P 500 and Dow Industrials had previously reached record highs during the week due to strong earnings reports and optimism about the potential resolution of hostilities in the Iran war.
The energy sector witnessed a rise in oil prices, with US crude settling at $77.29 per barrel and Brent at $82.49 per barrel. Moreover, an Iranian parliamentary committee is currently evaluating a bill that would forbid US, Israeli, and other hostile vessels from passing through the Strait of Hormuz. Traders noted that the impact of Iran-related news may be diminishing due to summer fatigue and headline fatigue.
The Dow Jones Industrial Average dropped 464.02 points (0.85%) to 53,885.10, while the S&P 500 fell 13.52 points (0.18%) to 7,710.03, and the Nasdaq Composite declined 15.09 points (0.06%) to 26,348.35. Among the companies reporting earnings, 84.8% surpassed analyst expectations, which is significantly higher than the 68% average beat rate since 1994.
However, certain data-driven firms, such as Western Digital and Sandisk, saw their stocks drop significantly after reporting their quarterly results.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
