U.S. stocks were mixed in early trading on Thursday, with the Dow Jones Industrial Average turning positive while the Nasdaq and S&P 500 indexes reduced their earlier declines. Traders continued to monitor the latest developments in the Middle East after the U.S. and Iran sent conflicting signals regarding peace negotiations.
The Dow rose 64.33 points, or 0.14%, to 46,493.82. The Nasdaq fell 133.69 points, or 0.61%, to 21,796.14. The S&P 500 dropped 23.51 points, or 0.36%, to 6,568.39.
Rising crude oil prices on Thursday put pressure on equity markets. Brent crude futures climbed 3.8% to $106.07 per barrel. West Texas Intermediate crude futures advanced 3.5% to $93.45 per barrel.
On Thursday local time, the U.S. President warned Iran via his social media platform Truth Social to "get serious" quickly regarding a peace deal with Washington, or face severe consequences.
In a post on Truth Social, the President stated that Iran "had better get serious, and fast, before it's too late, because once the moment passes, there is no turning back, and the situation will not look good."
The President also described Iranian negotiators as "very different" and "strange," claiming they have been "begging" the U.S. for a deal to end the war, which has now lasted four weeks.
According to three Israeli cabinet sources familiar with the plan, a 15-point proposal delivered by the U.S. President on Wednesday via Pakistan demands the removal of Iran's stockpile of highly enriched uranium, a halt to uranium enrichment activities, restrictions on its ballistic missile program, and an end to financial support for regional allies.
The conflict has nearly brought shipping through the Strait of Hormuz to a standstill. The strait typically handles about one-fifth of the world's crude oil and liquefied natural gas supplies. The International Energy Agency has called this the most severe oil supply disruption in history.
Earlier reports indicated that Iran's Foreign Minister told state media on Wednesday that senior officials in the Middle Eastern country were reviewing a U.S. proposal to end the war, but Tehran had no intention of negotiating with the United States.
Meanwhile, Gulf states issued a joint statement on Thursday condemning "criminal" attacks by Iran on their energy infrastructure. The statement also said they are prepared to defend themselves in the future.
"We value our brotherly relations with the Republic of Iraq, and at the same time call on the Iraqi government to take necessary measures to immediately stop attacks against neighboring countries," the joint statement read.
Despite the conflicting signals from the U.S. and Iran regarding peace talks, U.S. stocks still managed gains in the previous trading session, with major indexes on track for weekly advances.
Tobin Marcus, Head of U.S. Policy and Politics at Wolfe Research, suggested that recent market moves indicate investors are betting that Iran might be the party that is "lying."
He wrote in a report that the market "appears to be concluding that Iran's negative public statements could be a smokescreen for a more cooperative private stance. We are less certain of this, and with the five-day negotiation deadline set by the President, this ambiguity is unlikely to last long."
On the economic data front Thursday, the number of Americans filing for unemployment benefits changed little last week, indicating that layoffs remain low despite new economic challenges.
Data released by the Labor Department on Thursday showed initial jobless claims increased by 5,000 to 210,000 for the week ending March 21. The median estimate from a survey of economists was 210,000 initial claims. The number of continued claims, for the week ending March 14, fell to 1.82 million, hitting the lowest level in nearly two years.
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