WASHINGTON (dpa-AFX) - Following the rally seen during Wednesday's session, stocks moved mostly lower over the course of the trading day on Thursday. The major averages all moved to the downside, with the Nasdaq and the S&P 500 pulling back off record closing highs.
The major averages regained ground after an early afternoon nosedive but remained firmly negative. The Nasdaq slid 219.06 points or 0.9 percent to 24,438.50, the S&P 500 declined 29.50 points or 0.4 percent to 7,108.40 and the Dow fell 179.71 points or 0.4 percent to 49,310.32.
Profit taking contributed to the early weakness on Wall Street following yesterday's rally, which more than offset the pullback seen to start the week.
A steep drop by shares of IBM Corp. (IBM) also weighed on the markets, with the tech giant plunging by 8.3 percent.
The slump by IBM came after the company reported better than expected first quarter earnings but failed to raise its full-year guidance.
Industrial giant Honeywell (HON) was also under pressure after reporting first quarter earnings that exceeded estimates but forecasting weaker than expected second quarter earnings.
On the other hand, shares of Texas Instruments (TXN) soared by 19.4 percent after the chipmaker reported better than expected first quarter results and provided upbeat guidance.
Stocks showed a notable move to the downside in early afternoon trading amid a spike by the price of crude oil. U.S. crude oil futures have given back ground after surging by almost 6 percent but remain up by nearly 4 percent on the day.
Crude oil prices soared after a report from Israel's N12 claimed Iran's parliament speaker Mohammad Bagher Ghalibaf has resigned from the country's negotiating team due to interference from the Revolutionary Guard.
Concerns about a re-escalation of the U.S.-Iran war also weighed on the markets after President Donald Trump said he has ordered the Navy to 'shoot and kill any boat' that is putting mines in the waters of the Strait of Hormuz.
Trump also said Iran is 'having a very hard time figuring out who their leader is,' pointing to infighting between 'hardliners' and 'moderates.'
The president's latest remarks have added to uncertainty about the potential for a second round of U.S.-Iran peace talks, with Trump denying reports he is 'anxious' to end war.
Sector News
Software stocks showed a substantial move to the downside on the day, with the Dow Jones U.S. Software Index plunging by 5 percent after ending the previous session at its best closing level in almost three months.
AI-powered software company ServiceNow (NOW) helped lead the sector lower, plummeting by 17.8 percent despite reporting better than expected first quarter results.
Considerable weakness also emerged among computer hardware stocks, as reflected by the 2.9 percent slump by the NYSE Arca Computer Hardware Index.
Gold, biotechnology and brokerage stocks also came under pressure over the course of the session, while utilities and semiconductor stocks showed strong moves to the upside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index slid by 0.8 percent, while Hong Kong's Hang Seng Index slumped by 1 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the French CAC 40 Index advanced by 0.9 percent, the German DAX Index and the U.K.'s FTSE 100 Index both dipped by 0.2 percent.
In the bond market, treasuries came under pressure over the course of the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 2.9 basis points to 4.323 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
