US Stocks Trim Losses

US stock indices closed mixed on Thursday amid renewed bond and oil volatility. The S&P 500 and Nasdaq were near flat, while the Dow shed 162 points. The 10-year US Treasury yield topped 5.15% before retreating to around 5.1%, remaining at 2007 highs. The 30-year yield climbed to its highest level since 2004. Borrowing costs rose as oil prices increased amid heightened US-Iran tensions. However, reports suggested US and Iranian negotiators were closer to an agreement to restore tanker flows through the Strait of Hormuz. Oil trimmed gains, easing yields on shorter-dated maturities. AI hyperscalers closed mixed, with Alphabet up 1.3% and Meta adding 4.5% following positive feedback on its AI agent software and gadget releases. Microsoft shed 0.5%, while Amazon was flat. Oracle fell 3.5% after declaring force majeure over setbacks to a data center development in New Mexico. Chipmakers were also mixed amid heavy debt issuance for AI infrastructure.

US stocks pared losses on Thursday after the potential for diplomatic breakthroughs between the US and Iran softened the surge in energy prices. The S&P 500, Dow, and Nasdaq 100 traded near the flatline. Reports suggested that US and Iranian negotiators were closer to agreeing on restoring tanker flows through the Strait of Hormuz, easing fuel prices and yields on shorter-dated maturities. AI hyperscalers rebounded following their losses earlier this week, with Alphabet adding 1.5%. Meanwhile, Meta jumped 4%, extending its rally to 16% this week following positive feedback on its AI agent software and gadget releases. However, the risk of tight financial conditions continued to pressure chipmakers due to heavy debt issuance for AI infrastructure, with Nvidia, Intel, Marvell, and Micron trading down by up to 3%. Separately, Oracle fell 4.5% after declaring force majeure on setbacks to the development of a data center in New Mexico.

The Dow Jones Index is falling 217 points. Losses were driven by Caterpillar (-1.77%), Boeing (-1.63%) and Goldman Sachs (-1.48%). Biggest rises came from Salesforce (2.31%), Walt Disney (1.89%) and J&J (1.79%).