Geopolitical Tensions and Mixed Guidance Trigger Pullback from Record Highs

Wall Street indices closed lower on Thursday, erasing recent gains as geopolitical instability in the Middle East and a wave of mixed corporate guidance sparked a broad sell-off. The Nasdaq Composite led the decline, falling 0.9% to 24,438.50, while the S&P 500 and Dow Jones Industrial Average both dipped 0.4% to 7,108.40 and 49,310.32, respectively. The downturn was catalyzed by a sharp spike in crude oil futures, which climbed nearly 4% following reports of internal political turmoil in Iran and aggressive military directives from the U.S. administration. President Donald Trump ordered the Navy to engage any vessels placing mines in the Strait of Hormuz, heightening fears of a direct military escalation and casting doubt on the potential for renewed peace talks. Corporate reports provided a fragmented backdrop for the session. IBM shares plunged 8.3% after the company failed to raise full-year guidance despite beating first-quarter estimates. Similarly, Honeywell faced pressure due to a weaker-than-expected second-quarter forecast. In contrast, Texas Instruments surged 19.4% on the back of robust first-quarter results and optimistic forward guidance. The software sector was particularly hard hit, with the Dow Jones U.S. Software Index dropping 5%. ServiceNow plummeted 17.8% despite beating earnings expectations. In the bond market, the benchmark ten-year Treasury yield rose 2.9 basis points to 4.323%, reflecting broader risk-off sentiment. Global markets mirrored the caution, with Japan's Nikkei 225 and Hong Kong's Hang Seng both closing in the red.