On April 23 (local time), the Dow Jones Industrial Average closed down 180.70 points, or 0.37%, at 49,309.33. The S&P 500 fell 29.60 points, or 0.41%, to 7,108.30, and the Nasdaq dropped 219.06 points, or 0.89%, to 24,438.50.
The S&P 500 and Nasdaq briefly hit fresh intraday records early in the session, then reversed as Iran-related tensions intensified. Profit-taking after the prior day’s highs combined with renewed geopolitical risk.
The Strait of Hormuz was at the center of the market’s unease. The Associated Press reported that U.S. President Donald Trump ordered the U.S. military to sink small Iranian boats attempting to lay mines in the strait. The U.S. military also detained another tanker in the Indian Ocean tied to Iranian crude oil. Iran maintained it would not enter talks until the U.S. blockade is lifted.
Military pressure also increased. AP reported that the arrival of the George H.W. Bush in the Indian Ocean brought the number of U.S. aircraft carriers deployed in waters near the Middle East to three.
Reuters reported that Iran’s Revolutionary Guard on April 22 detained two container ships trying to leave the Strait of Hormuz and was also reported to have fired on those vessels and another ship during the incident.
Oil prices extended their rally. Reuters reported U.S. benchmark West Texas Intermediate rose 3.11% to settle at $95.85 a barrel, while Brent gained 3.10% to $105.07. Reports that Iran’s air defenses were activated over Tehran added to anxiety in the oil market.
As investors sought safety, the dollar and Treasury yields rose. The dollar index was up 0.19% at 98.80. The 10-year U.S. Treasury yield rose 3 basis points to 4.33%, and the 2-year yield climbed 4 basis points to 3.83%.
Technology shares led the decline. ServiceNow slid after saying some large contracts were being delayed due to the fallout from the Middle East war, sparking broader selling in software stocks. IBM also fell sharply despite results topping expectations, as investors focused on slower software growth and concerns about its outlook. Microsoft, Palantir and other large tech names also weakened, leaving the Nasdaq with the biggest drop among the major indexes.
Still, earnings helped limit losses. Reuters said that among 123 S&P 500 companies that have reported first-quarter results, 82.1% beat market expectations. After the close, Intel jumped in after-hours trading after issuing a second-quarter revenue forecast above expectations, offering some support to tech sentiment.
* This article has been translated by AI.
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