Oil Surges, Tech Stocks Tumble Amid Iran Tensions

Major US stock indices, including the S&P 500 and Dow, closed lower on Thursday, marking a retreat from record highs. The tech-heavy Nasdaq also experienced a significant downturn. Losses were primarily driven by a sharp selloff in software stocks, with IBM and ServiceNow reporting substantial declines after their earnings reports. IBM's decision to maintain its full-year guidance disappointed investors, while ServiceNow cited impacts from the Middle East conflict on its subscription revenue.

The market's sentiment was further dampened by escalating geopolitical tensions surrounding Iran. President Trump issued a directive for the Navy to "shoot and kill any boat" found laying mines in the Strait of Hormuz. This hardline stance coincided with reports of heightened military activity in the region and concerns over the seizure of commercial ships, impacting global trade routes.

Oil prices surged by the end of the session, with Brent crude surpassing $105 per barrel. This rise was partly fueled by unconfirmed reports of a resignation within Iran's negotiating team, potentially indicating a more hardline approach. Despite previous market resilience to Iran-related news, the combination of elevated oil prices, sector-specific weaknesses, and geopolitical uncertainties kept investors cautious.