US sharemarkets fell on Thursday after the S&P 500 and Nasdaq Composite briefly touched fresh intraday record highs before reversing lower as uncertainty surrounding negotiations between the United States and Iran weighed on sentiment.
The S&P 500 declined 0.38% to close at 7,337.11, while the Nasdaq Composite slipped 0.13% to 25,806.20. The Dow Jones Industrial Average lost 313.62 points, or 0.63%, ending the session at 49,596.97.
Technology and semiconductor stocks came under pressure after leading recent gains. Amazon weighed on the broader market, while semiconductor names including Broadcom and Micron Technology also declined.
Despite Thursday’s pullback, investor appetite for artificial intelligence-related stocks remained strong following a robust earnings season. Among individual companies, cybersecurity group Fortinet jumped 20% after raising its full-year billings guidance. Peloton also rose nearly 9% after reporting third-quarter revenue ahead of expectations.
Oil prices recovered from steep intraday losses as investors continued monitoring developments in the Iran war and the status of the Strait of Hormuz.
US West Texas Intermediate crude settled down 0.28% at US$94.81 a barrel, while Brent crude fell 1.19% to US$100.06. Both benchmarks traded well below earlier highs before rebounding later in the session. After Wall Street closed, oil prices rose more than 2% following reports the US bombed several Iranian targets, prompting Tehran to accuse Washington of violating the ceasefire.
Gold eased back below US$4,700 an ounce as traders reassessed geopolitical risk and commodity positioning.
Australian Market Outlook
Australian shares are expected to open sharply lower following renewed uncertainty around negotiations between the US and Iran and a rebound in oil prices late in the offshore session.
S&P/ASX 200 futures are down 152 points, or 1.7%, to 8,746, with weakness expected across energy, materials and technology stocks as investors assess the latest developments in the Iran war and the risk of further escalation around the Strait of Hormuz.
Reporting season also remains in focus locally, with results due from Macquarie Group, QBE Insurance, News Corp, RE Group and Block.
There is no major Australian economic data scheduled for release on Friday. Offshore, investor attention will turn to the April US payrolls report due at 10.30pm AEST, which is expected to provide further insight into the strength of the US economy and the outlook for interest rates.
