US equity indexes fell in midday trading Thursday, as geopolitical risk ratcheted up in the Middle East and Tesla's (TSLA) capital expenditure guidance for this year tripled from a year ago.
The Nasdaq Composite fell 0.2% to 24,598.7, with the Dow Jones Industrial Average down by 0.2% to 49,409.2. The S&P 500 was less than 0.1% lower at 7,134.9.
Financials and materials led the decliners, while utilities and industrials were among the top gainers.
President Donald Trump said Thursday on Truth Social that he has ordered the US Navy to "shoot and kill" any boat that is laying mines in the Strait of Hormuz, the choke point for about a fifth of global crude oil flows. 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.
West Texas Intermediate crude oil futures rose 1.2% to $94.07, and Brent crude futures advanced 1.3% to $103.20 after midday. The US 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, while the US refuses to lift the siege.
US Treasury yields were mixed, with the 10-year steady at 4.29% and the two-year rose by 1.2 basis points to 3.8%.
In company news, Tesla (TSLA) stock dropped nearly 2% 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.
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