US equity indexes fell in midday trading on Thursday as investors evaluated quarterly earnings, and after Washington and Tehran remained deadlocked over a reopening of the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.
The Nasdaq Composite fell 0.9% to 24,443.5, with the Dow Jones Industrial Average down by 0.6% to 49,181.9. The S&P 500 was 0.5% lower at 7,098.8.
Financials and technology led the decliners, while utilities and industrials were among the top gainers.
Tesla (TSLA) shares dropped 3.8% after the electric vehicle manufacturer issued higher-than-expected 2026 capital expenditure guidance. TechCrunch reported the electric vehicle manufacturer is planning to spend $25 billion this year, compared with $8.5 billion in 2025.
ServiceNow (NOW) reported strong Q1 results, but softer organic revenue trends and a slightly weaker margin outlook weighed on its overall forecast, Oppenheimer said in a note. Shares of ServiceNow sank 18.6%, the worst performer on the S&P 500.
International Business Machines (IBM) fell 10%, the steepest decline on the Dow, following its quarterly results. Software growth decelerated to 8% in constant currency from 11% in Q4 and 9% in Q3, a "potential red flag for the bears," CFRA said in a note.
Texas Instruments (TXN) shares were up nearly 19%, among the biggest outperformers on the S&P 500 and the Nasdaq, after the company posted higher Q1 earnings and revenue and set out Q2 guidance above consensus.
United Rentals (URI) traded 22% higher, the top gainer on the S&P 500, after the company reported overnight higher Q1 adjusted earnings and revenue and lifted its 2026 sales guidance.
President Donald Trump has ordered the US Navy to "shoot and kill" any boat that is laying mines in Hormuz, according to his Truth Social post on Thursday. On the same day, Iran flaunted its tightened grip over Hormuz with a video of commandos storming a cargo ship named MSC Francesca, Reuters reported.
The United States and Iran remain at an impasse, with Tehran refusing to negotiate a peace deal as long as the US Navy continues to blockade its ports and Washington refuses to lift the siege. Mediators are trying to get the diplomatic process back on track, including arranging a possible meeting between warring parties as soon as Friday, The Wall Street Journal reported.
West Texas Intermediate crude oil futures rose 2.8% to $92.13, and Brent crude futures advanced 1.7% to $103.63.
In precious metals, gold futures were steady at $4,751.5, and silver futures dropped 2% to $76.44.
In economic news, US initial jobless claims rose to 214,000 in the week ended April 18 from an upwardly revised 208,000, compared with the 210,000 print expected in a Bloomberg-compiled survey.
Meanwhile, the April flash reading of manufacturing conditions from S&P Global improved to a 47-month high of 54.0 from 52.3 in March, compared with the 52.5 anticipated in a Bloomberg-compiled poll.
US Treasury yields were mixed, with the 10-year increasing 4.3 basis points at 4.34% and the two-year adding 3.5 basis points at 3.83%.
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