US equities pulled back from record territory on Thursday as an escalating naval standoff in the Strait of Hormuz overwhelmed a solid earnings season. The S&P 500 fell 0.4% to 7,108.97 after touching an intraday record of 7,147.78, the Nasdaq Composite dropped 0.9% to 24,438.50 — its biggest decline in a month — and the Dow slipped 0.4% to 49,309.33. Trump ordered the Navy to fire on Iranian boats laying mines in the strait and declared the US had “total control” of Hormuz, while Axios reported Iran had deployed additional mines. Brent crude surged 4% to $106.00 a barrel, extending its weekly gains as Dated Brent physical prices climbed above $107. The SOX semiconductor index extended its record run to a 17th consecutive session of gains. After the closing bell, Intel soared 19% on AI-fuelled revenue guidance that crushed estimates, while Meta and Microsoft announced plans to cut or buy out up to 23,000 jobs to offset AI spending. ASX 200 futures slipped 4 points to 8,828, with the Australian dollar at US$0.7130.

Key Takeaways

01

The S&P 500 fell 0.4% to 7,108.97 after touching an intraday record at 7,147.78, the Nasdaq dropped 0.9% to 24,438.50, and the Dow slipped 0.4% to 49,309.33, with the SOX semiconductor index extending its winning streak to 17 days.

02

Trump ordered the US Navy to “shoot and kill” any Iranian boat laying mines in the Strait of Hormuz and declared “total control” of the waterway, while Iran reportedly deployed additional mines and mediators scrambled to salvage peace talks.

03

Brent crude surged 4% to $106.00 a barrel — up for a fourth consecutive session — with WTI rising 0.8% to $96.60, as Hormuz disruptions keep physical markets signalling acute near-term supply tightness.

04

Texas Instruments surged 19.4% on strong guidance while Tesla fell 3.7% on $25B+ capex plans, IBM dropped 8.3% and ServiceNow cratered 17.7% as software stocks bore the brunt of AI-disruption fears.

05

Intel soared 19% after hours on AI-fuelled Q2 revenue guidance of $13.8–$14.8 billion versus the $13.07 billion estimate, while Meta and Microsoft announced cuts affecting up to 23,000 jobs to offset AI infrastructure spending.

06

ASX 200 futures slipped 4 points to 8,828, the Australian dollar held at US$0.7130, and Trump extended the Israel–Lebanon ceasefire by three weeks, removing a key roadblock to broader Middle East negotiations.

US equities extended their remarkable April run on Wednesday as Trump’s decision to indefinitely extend the Iran ceasefire removed the immediate threat of a return to hostilities, lifting the S&P 500 1.1% to a record 7,137.90 and the Nasdaq 1.6% to 24,657.57. The Dow Jones Industrial Average added 0.7% to 49,490.03. Semiconductor stocks were again the standout, with the SOX index recording a 16th consecutive session of gains — the longest winning streak in the index’s history — driven by expectations of 57% sector revenue growth in 2026. Brent crude settled near $102 a barrel as tensions in the Strait of Hormuz persisted, with Iran seizing two commercial vessels and firing on ships despite the ceasefire. Nearly 80% of S&P 500 companies reporting Q1 results have beaten earnings estimates so far, with GE Vernova surging 13.75% after raising guidance and Tesla gaining 4.6% after-hours on a surprise positive free cash flow. ASX 200 futures fell 23 points to 8,855, with the Australian dollar steady at US$0.7159 and S&P Global’s preliminary April PMIs due at 9am AEST.

Key Takeaways

01 The S&P 500 gained 1.1% to a record 7,137.90, the Nasdaq rose 1.6% to 24,657.57, and the Dow added 0.7% to 49,490.03, with the SOX semiconductor index recording its longest-ever 16-day winning streak.

02 Trump extended the Iran ceasefire indefinitely after Pakistan’s mediation request, though Iran says it will not negotiate until the US naval blockade is lifted and has set no timeline for a proposal.

03 Brent crude settled near $102 a barrel and WTI at $92.46 as Iran seized two commercial ships in the Strait of Hormuz and fired on a third, keeping the waterway at a near-standstill.

04 Q1 earnings are tracking 14% growth with nearly 80% of S&P 500 reporters beating estimates; GE Vernova surged 13.75%, Boeing rose 5.53%, and Tesla gained 4.6% after-hours on a surprise positive free cash flow.

05 China’s support for Iran has clear limits — Beijing buys 90% of Iran’s oil exports but has avoided military backing, with Xi Jinping calling for Hormuz to reopen while balancing ties with Gulf rivals ahead of a Trump summit.

06 ASX 200 futures fell 23 points to 8,855, the Australian dollar held at US$0.7159, and S&P Global preliminary April PMIs are due at 9am AEST with Fortescue, Santos and Woodside AGM on Thursday’s agenda.

The S&P 500 fell 0.6% to 7,064.05, extending its retreat from record highs as VP Vance called off his trip to Pakistan and Iran refused to attend further negotiations. Oil surged above $100 intraday before Trump’s after-hours ceasefire extension knocked Brent back below $100 — WTI settled at $92.13 (+2.8%) and Brent near $95. The 10-year Treasury yield rose 6 basis points to 4.31% as Warsh’s hawkish testimony — calling for a new inflation framework and “regime change” in policy conduct — crushed rate-cut expectations to just a 30% chance before January. Apple shed 2.5% on news Tim Cook will step down as CEO in September, replaced by hardware chief John Ternus. US retail sales surged 1.7% in March, with gasoline station receipts jumping 15.5% — masking weaker underlying demand. ASX 200 futures point to 8,915 (-63 pts / -0.70%), with Axios reporting Iran’s Supreme Leader Khamenei is expected to respond to the latest proposals on Wednesday.

The S&P 500 fell 0.6% to 7,064.05, the Nasdaq slipped 0.6% to 24,259.96 and the Dow dropped 0.6% to 49,149.60 — a second straight decline from record highs, with 10 of 11 S&P sectors lower and only energy advancing.

Trump extended the US-Iran ceasefire indefinitely after the bell, citing Iran’s “seriously fractured” leadership, but maintained the Hormuz blockade; Vance’s Pakistan trip was called off after Iran refused to attend talks.

WTI rose 2.8% to $92.13 and Brent settled near $95 after touching $100 intraday; spot gold fell 3.0% to $4,677.24 as the dollar strengthened and yields surged on Warsh’s hawkish testimony.

Fed chair nominee Kevin Warsh called for “regime change” at the central bank and a new inflation framework, sending the 10-year yield up 6 bps to 4.31% and cutting rate-cut odds to 30% before January.

Apple fell 2.5% as Tim Cook announced he will step down as CEO on September 1 in favour of hardware chief John Ternus; Amazon invested an additional $5 billion in Anthropic; Deutsche Telekom is weighing a full T-Mobile merger.

ASX 200 futures fell 63 points to 8,915 (-0.70%); BHP, South32 and Paladin Energy report Wednesday; Axios says Iran’s Supreme Leader Khamenei expected to respond to proposals on Wednesday.