“Today, there is the impression that the attention paid to results has been overshadowed by the rise in energy prices,” he told AFP.
Strait of Hormuz Causes Concern
Oil prices continued to rise – Brent above $100 per barrel – due to “disappointment with the failure to reopen the Strait of Hormuz, combined with tense expectations for upcoming negotiations” between Washington and Tehran, according to Commerzbank’s Carsten Fritsch.
Donald Trump said Thursday that he has “all the time in the world” in the Middle East war.
American President Donald Trump stated on Thursday that he has “all the time in the world” in the Middle East war, where the ceasefire in place for the past two weeks between Tehran and Washington seems to hang by a thread.
Iranian media reported explosions in Tehran, and Israel’s defense minister said he was ready to resume the war, although a security source in the country told AFP that the army was not attacking Iran.
Markets Affected by Energy and Rates
“Bond yields and oil prices remain at uncomfortably high levels,” noted Adam Turnquist from LPL Financial.
The ten-year yield on U.S. government bonds, the benchmark rate, rose to 4.32% from 4.30% the previous day.
Wall Street on the edge: “Volatility is here to stay”
According to Briefing.com analysts, the decline in stock indices should be viewed in perspective.
“The Nasdaq was up 14.2% for the month before today’s session; so it’s not unreasonable to say that it was vulnerable to some profit-taking,” they noted.
Texas Instruments Soars, ServiceNow Falters
Investors also closely watched quarterly performances of companies, which led to various movements.
Electronics component specialist Texas Instruments surged by over 20%, to $282.23.
With better-than-expected results in the first three months of the year, the company expects its earnings per share this quarter to range between $1.77 and $2.05, compared to the analysts’ estimate of $1.57.
Briefing.com analysts see this as a “general strength” and “new momentum” for Texas Instruments.
The return of oil to $100 revives market nervousness
Conversely, software publisher ServiceNow (-17.59%, $84.94) struggled despite a 22% increase in its first quarter revenue year-over-year. Its net income barely increased during the period, and the company mentioned facing “headwinds” from the Middle East, where the war delayed the conclusion of certain contracts.
In its wake, Adobe declined by 6.63% and Oracle by 5.98%.
Tesla Penalized Despite Solid Accounts
Despite better-than-expected results, electric vehicle specialist Tesla was penalized for its increasingly significant spending outlook, estimated at $25 billion this year, as signaled earlier.
By the end of the day, its stock fell by 3.56% to $373.72.
A Market Also Keeping an Eye on Employment
As for indicators, weekly jobless claims were slightly above expectations, but “it must be acknowledged that the demands remain very low compared to past standards,” according to Samuel Thombs from Pantheon Macroeconomics.
