U.S. Stocks Slip from Records as Oil Volatility Persists Amid Iran War Hopes

Wall Street retreats 0.4-0.6% on S&P, Dow, Nasdaq after oil fluctuates on deal talks

U.S. stocks fell from their records Thursday after oil prices yo-yoed as Wall Street waits to see whether its hopes for a deal to end the Iran war are warranted or just wishful.

The S&P 500 fell 0.4% from its all-time high set the day before. The Dow Jones Industrial Average dropped 313 points (0.6%) and the Nasdaq composite slipped 0.1% from its own record.

Wall Street experienced sharp swings earlier in the war as hopes for reopening the Strait of Hormuz rallied then faded quickly?a pattern that could repeat. Iran has launched a government agency to vet and tax vessels passing through the strait, potentially raising fuel costs, per a shipping data report. Despite war uncertainties, strong U.S. corporate profits have bolstered stocks, as prices track earnings long-term.

Brent crude settled at $100.06 per barrel, down 1.2% from over $115 early this week, after wild swings tied to Iran's review of U.S. war-ending proposals and Pakistan's mediation optimism. Hopes persist that ending the war will free trapped oil tankers, though oil and gasoline prices remain far higher due to the strait's closure.

Datadog leaped 31.3% to help lead the U.S. market after the monitoring and security platform for cloud applications topped analysts? expectations for profit in the latest quarter. Albemarle rose 3% after the lithium products and specialty chemicals company likewise delivered better-than-expected results. Taser maker Axon Enterprise rallied 10.6% after raising its forecast for revenue this year in part because of big growth for its counter-drone products.

Whirlpool tumbled 11.9% after reporting much weaker results than analysts expected. Shake Shack dropped 28.3% after its results for the latest quarter fell well below analysts? expectations. McDonald?s stock held steadier and slipped 0.1% after its revenue for the latest quarter edged past analysts? expectations. CEO Chris Kempczinski said high gasoline prices and consumer anxiety over the Iran war could dent its sales this spring.

In stock markets abroad, indexes fell in Europe following a stronger finish in Asia. Stocks dropped 1.5% in London and 1.2% in Paris. Japan?s Nikkei 225 roared 5.6% higher as trading in Tokyo resumed following a holiday and caught up with big gains for Asian markets from earlier in the week. It has soared nearly 71% in the last 12 months on strength for tech stocks benefiting from the boom in artificial intelligence.

In the bond market, Treasury yields rose after oil prices pared their drops. The yield on the 10-year Treasury climbed to 4.38% from 4.36% late Wednesday. Higher yields can raise rates for mortgages and other kinds of loans going to U.S. households and businesses, which in turn can slow the economy. Higher yields also tend to push downward on prices for stocks and other kinds of investments. The 10-year Treasury yield was at just 3.97% before the war.

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