US sharemarkets declined on Thursday, led by weakness in technology stocks and rising oil prices, as uncertainty around the Iran war weighed on sentiment. The S&P 500 fell 0.41% to 7,108.40 after earlier reaching a fresh intraday high, while the Nasdaq Composite dropped 0.89% to 24,438.50. The Dow Jones Industrial Average lost 179.71 points, or 0.36%, to 49,310.32.
Weakness was concentrated in software, with IBM and ServiceNow falling sharply following their earnings updates. Despite reporting results ahead of expectations, IBM maintained its full-year guidance, while ServiceNow flagged slower subscription growth linked to the Middle East conflict. Broader software names followed lower, with Microsoft down about 4%, while Palantir Technologies and Oracle also declined. The iShares Expanded Tech-Software Sector ETF dropped around 6%.
The pullback follows a strong rally in recent weeks, with markets appearing to consolidate near record levels as investors assess the next catalyst.
Earnings remain in focus, particularly in the technology sector. Microsoft and Meta Platforms have indicated plans to reduce headcount as part of broader cost management efforts tied to ongoing investment in artificial intelligence.
Oil prices moved higher amid renewed concerns over supply disruptions, with Brent crude rising above US$105 a barrel during the session, reflecting uncertainty around negotiations and the stability of shipping routes.
Australian Market Outlook
Australian shares are set to open modestly lower, following weakness on Wall Street.
S&P/ASX 200 futures were down 4 points, or 0.1%, to 8,828, after fluctuating between small gains and losses earlier in the session.
Locally, Newmont and PLS Group are scheduled to report results.
