TLDR
- The Dow fell 200 points, largely due to IBM dropping nearly 10% on slowing revenue growth
- ServiceNow fell over 15% after earnings despite a positive report, dragging software stocks down
- Texas Instruments surged 16% after strong earnings, lifting semiconductor stocks 2%
- Tesla slipped nearly 3% after CEO Elon Musk signaled heavy capital spending ahead
- Oil topped $102 a barrel as U.S.-Iran peace talks stalled and the Strait of Hormuz remained blocked
U.S. stocks fell on Thursday as a mixed batch of corporate earnings pulled markets in different directions, while rising oil prices added pressure from overseas.
The Dow Jones Industrial Average dropped around 200 points. The S&P 500 slid 0.2% and the Nasdaq fell 0.3%, both pulling back from record highs set earlier in the week.
Much of the damage in the Dow came from IBM, which fell nearly 10%. Slowing revenue growth raised concerns that AI tools from competitors like Anthropic could disrupt its business.
ServiceNow also dropped more than 15% despite reporting earnings that beat expectations. Investors appeared to focus on concerns about the software sector’s growth outlook.
Together, those two stocks pulled the broader software sector down roughly 5% on the day.
Tech Splits Between Winners and Losers
Not all tech stocks fell. Texas Instruments jumped 16% after posting strong earnings, making it one of the biggest gainers of the day.
The semiconductor sector as a whole rose about 2%, showing a clear divide between chip stocks and software stocks.
Tesla rose initially after its earnings beat estimates, but turned lower by market open. The stock fell close to 3% after CEO Elon Musk outlined plans for heavy capital spending that is expected to weigh on cash flow.
American Express fell 1.5% even after beating on both revenue and profit. Blackstone dropped more than 4% despite also topping estimates.
American Airlines bucked the trend, rising 3% after beating on revenue and earnings. The airline did lower its outlook, citing a $4 billion increase in fuel costs tied to rising jet fuel prices.
Oil Rises as Iran Talks Stall
Oil prices climbed for a fourth straight day as U.S.-Iran peace talks hit a pause. The two sides failed to meet for further negotiations despite President Trump extending the current truce indefinitely.
The Strait of Hormuz remains blocked, a key route for global oil shipments. Brent crude climbed back above $102 per barrel, and West Texas Intermediate topped $93.
War-related inflation concerns are adding to investor unease, pushing many to focus on company earnings as a guide for where markets head next.
Weekly jobless claims ticked up slightly to 214,000, coming in a bit higher than expected. A preliminary reading on April manufacturing activity is also being watched for signs of economic impact from the ongoing conflict.
Initial jobless claims rising to 214,000 marked the most recent economic data point released Thursday morning.
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