The S&P 500 (^GSPC 0.41%) slipped 0.41% to 7,200.75, the Nasdaq Composite (^IXIC 0.19%) eased 0.19% to 25,067.80, and the Dow Jones Industrial Average (^DJI 1.13%) fell 1.13% to 48,941.90 as geopolitical tensions drove oil price higer and pressured cyclicals.
Market movers
As has happened at previous points in the U.S.-Iran conflict, energy producers gained as oil prices increased. Occidental Petroleum, APA Corporation, and Diamondback Energy all pushed upwards. Shares in travel firms fell, particularly Norwegian Cruise Line, which tumbled on missed Q1 expectations.
Crypto‑linked firms such as Coinbase Global, Circle Internet Group, and Robinhood Markets outperformed on reports that lawmakers may have reached a compromise on key digital asset legislation. Lead crypto, Bitcoin, jumped above $80,000 for the first time since January.
What this means for investors
Fears of a re-escalation in the U.S.-Iran war contributed to choppy trading today and weighed on major U.S. stocks. WTI crude oil gained 3% to close at around $105 a barrel, as traders reacted to mixed headlines about potential violence in the crucial Strait of Hormuz. Long-term, commentators also warn that markets are underestimating the cost of a prolonged closure.
Palantir Technologies reported Q1 earnings after the bell, beating expectations. Investors are watching megacap and artificial intelligence (AI)- focused companies, which have supported recent growth despite oil and inflation concerns. This week, earnings from Advanced Micro Devices, CoreWeave, and Arm Holdings will give a clearer picture of the sustainability of current tech demand.
Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Bitcoin, and Palantir Technologies. The Motley Fool recommends Coinbase Global and Occidental Petroleum. The Motley Fool has a disclosure policy.
