snapped its longest winning streak

The S&P 500 experienced its longest winning streak come to an end on Thursday as investors remained cautious amid Middle East developments and corporate earnings. The broad market index contracted 0.18% to close at 7,709.96, while the Nasdaq Composite fell 0.06% to 26,348.35. The Dow Jones Industrial Average dropped 464.02 points, or 0.85%, to 53,885.

The decline was driven by a 3% drop in Salesforce shares following a management reshuffle and a more than 6% decline in Sandisk stock, which reported disappointing fourth-quarter results. AppLovin and Western Digital also faced significant drops, with the latter's 13% plunge stemming from a weak first-quarter forecast. Despite these mixed earnings, Sandisk and Western Digital have demonstrated impressive growth over the past year, with Sandisk up nearly 3,000% and Western Digital over 500%.

Oil prices surged after Iranian state news reported a draft plan to restrict ship traffic through the Strait of Hormuz, which could bar U.S. and Israeli vessels. The plan is currently under review by an Iranian parliamentary committee. Iran and Oman are also nearing a deal to reopen the strait, though the final arrangements are yet to be determined.

Energy stocks rose slightly, while consumer sectors like real estate, materials, and industrials lagged. UWM Holdings, a prominent mortgage lender, saw a 40% drop after suspending its dividend and raising fresh capital. JPMorgan raised its price target on SharkNinja, citing a strong growth outlook, with shares reaching a 52-week high but trading down slightly.