Wall Street Falls Amid Rising Iran Tensions as Oil Prices Jump/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks edged lower as rising oil prices fueled concerns over a potential U.S.-Iran conflict. Mixed earnings from major companies, including Walmart and Booking Holdings, added pressure. Treasury yields held steady as investors weighed labor data and Federal Reserve policy.
US Stocks Slip on Iran Oil Concerns Quick Looks
- S&P 500 down 0.4% in early trading
- Dow falls 257 points; Nasdaq drops 0.6%
- Oil climbs above $66 per barrel
- Iran tensions raise inflation worries
- Booking Holdings sinks 8%
- Walmart rises despite cautious outlook
- Treasury yields steady at 4.09%
- Asian markets mixed; Europe lower
Deep Look: Wall Street Falls Amid Rising Iran Tensions as Oil Prices Jump
U.S. stocks slipped Thursday morning as investors digested mixed corporate earnings and a renewed jump in oil prices tied to escalating tensions between the United States and Iran.
The S&P 500 fell 0.4%, potentially snapping a four-day winning streak. The Dow Jones Industrial Average dropped 257 points, or 0.5%, while the Nasdaq Composite declined 0.6% in early trading.
Oil Prices Climb on Iran Concerns
Markets were unsettled by rising crude prices, with benchmark U.S. oil climbing more than 1.5% to top $66 per barrel. Investors are increasingly wary of a potential military confrontation between the U.S. and Iran, a key global oil producer with some of the world’s largest reserves.
President Donald Trump has intensified pressure on Tehran over its nuclear program. Any escalation that disrupts oil exports could squeeze global supply and push energy prices higher — a scenario that would likely ripple through inflation and corporate costs.
Oil companies were among the few bright spots on Wall Street. Shares of Occidental Petroleum jumped 8.7% after reporting stronger-than-expected quarterly profits, benefiting from higher crude prices.
Earnings Season Brings Mixed Signals
Corporate earnings also shaped trading. Booking Holdings fell 8% despite reporting quarterly profits that slightly beat analyst forecasts. The company, which operates Booking.com, Priceline, and OpenTable, has faced investor anxiety over the potential impact of artificial intelligence-driven competitors.
Market analysts say investors have been quick to sell companies perceived as vulnerable to AI disruption, creating what some describe as a “shoot first, ask questions later” mentality across industries ranging from technology to logistics.
Used-car retailer Carvana slid 4.3% even after posting stronger-than-expected profits. Investors appeared focused instead on lower-than-anticipated profit margins per vehicle sold.
Retail giant Walmart helped cushion broader losses, rising 1.6%. The company reported solid results for the close of its fiscal year, though its profit outlook for the coming year fell short of Wall Street’s expectations. The stock had fluctuated in premarket trading before settling into gains.
Meanwhile, eBay gained 2.8% after topping revenue and profit estimates and announcing a $1.2 billion cash acquisition of Depop, a secondhand fashion platform previously owned by Etsy. Analysts say the deal could help eBay expand its appeal to younger shoppers.
Bonds and Federal Reserve Outlook
In the bond market, Treasury yields held relatively steady following new data showing that fewer Americans applied for unemployment benefits last week. The decline suggests layoffs may be moderating, reinforcing signs of a resilient labor market.
The yield on the 10-year U.S. Treasury remained at 4.09%, unchanged from the previous day.
A stable job market could complicate expectations for interest rate cuts from the Federal Reserve. Policymakers have signaled they want further evidence that inflation is cooling before reducing borrowing costs again this year.
Rising oil prices could present an additional challenge. Higher energy costs often feed into broader inflation measures, potentially delaying any move by the Fed to ease monetary policy.
Global Markets Mixed
Overseas markets reflected a mixed picture. European indexes traded lower, while Asian markets were more varied.
South Korea’s Kospi surged 3.1% as trading resumed following the Lunar New Year holiday. However, markets in Hong Kong and Shanghai remained closed.
Investor Focus Ahead
With earnings season in full swing and geopolitical risks resurfacing, investors are navigating multiple crosscurrents: resilient economic data, cautious Federal Reserve messaging, volatile oil prices, and shifting technology trends.
The trajectory of crude prices — particularly if U.S.-Iran tensions intensify — may become a decisive factor for markets in the weeks ahead, influencing inflation expectations, corporate profitability, and central bank policy.
For now, Wall Street appears to be taking a cautious stance as it weighs both domestic economic strength and growing geopolitical uncertainty.
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