US markets slipped Thursday as rising geopolitical tensions and mixed corporate earnings weighed on investor sentiment, pulling Wall Street back from record highs.
Futures tied to the S&P 500 Index and Nasdaq 100 Index dropped about 0.3% before the opening bell, signaling a retreat after a strong rally.
The Dow Jones Industrial Average had fallen roughly 0.8%, while the Nasdaq slid more than 1%, reversing some of its recent record-setting momentum.
The downturn is largely driven by uncertainty around the Strait of Hormuz and the broader US-Iran standoff.
Joshua Mahony, chief market analyst at Scope Markets, warned: “In what began as a military conflict, we now appear to have entered a period where both sides believe they can wage war by cutting supply routes and inflicting both economic and political damage on their opponent,”
This leaves the world in limbo, with businesses around the globe weighing up the potential damage being done with each day that passes.
Rising oil prices have added another layer of concern for investors, with Brent crude climbing as high as $105 during the session.
Higher energy costs are already hitting sectors like airlines, where margins are sensitive to fuel prices.
Tesla, tech stocks drag markets, with the stock falling more than 3% despite posting better-than-expected quarterly results.
