Wall Street’s key stock indices ticked downward on Thursday as crude oil prices spiked following news report that Iran’s Supreme Leader Ayatollah Mojtaba Khamenei directed the nation’s uranium to remain within the country, dampening expectations for a breakthrough in diplomatic talks between Washington and Tehran.
At the opening bell, the Dow Jones Industrial Average fell 25.5 points, or 0.05%, to 49,983.8. The S&P 500 fell 22.2 points, or 0.30%, to 7,410.78, while the Nasdaq Composite dropped 126.7 points, or 0.48%, to 26,143.616.
Market participants grew increasingly anxious that an extended blockage of the strategic Strait of Hormuz might exacerbate global energy supply shocks and drive up inflationary pressures. Although Tehran indicated that the newest proposal from Washington had narrowed some differences between the two nations, media reports regarding Iran’s decision to retain its uranium stockpiles were widely interpreted as a major obstacle to a potential diplomatic resolution.
Consequently, Brent crude oil surged 3.4% to reach $108.54 per barrel, erasing the majority of its weekly declines. Energy markets have experienced intense volatility amid ongoing uncertainty over how long the conflict with Iran will keep the crucial Strait of Hormuz closed, which continues to block oil tankers from exiting the Persian Gulf to distribute crude worldwide.
The yield on the 10-year Treasury rose to 4.61% from 4.57% late on Wednesday.
Key Stock Movers
Walmart shares tumbled 5.9% on the heels of its quarterly earnings release. The retail giant issued weaker-than-anticipated profit guidance for the upcoming periods.
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