The S&P 500 fell on Thursday, weighed by higher oil prices, as traders followed the latest developments out of the Middle East.
The Dow Jones Industrials faltered 469.38 points, or 1%, to 45,960.11
The much-broader index subtracted 114.74 points, or 1.7%, to 6,437.16
The NASDAQ lost 521.74 points, or 2.4%, to 21,408.08.
Speaking about the recent performance in oil prices, President Donald Trump said he thinks their surge as well as the pressure seen in the broader market are not as bad as he expected. “It’s all going to come back down to where it was and probably lower,” he said regarding oil.
Earlier today, Trump said in a Truth Social post that Iran “better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty.” Trump also labeled Iranian negotiators as “very different” and “strange,” claiming they were “begging” the U.S. to make a deal to end the now four-week war.
This comes after Iran’s foreign minister reportedly told state media on Wednesday that top authorities in the Middle Eastern nation are reviewing an American proposal to end the war, but Tehran has no intention of having talks with the U.S.
Meanwhile, Gulf countries issued a joint statement Thursday condemning Iran’s “criminal” strikes from Iraqi territory on their energy infrastructure. They added that they are ready to defend themselves going forward.
One observer said markets “seem to be concluding that Iran’s negative public message may be a smokescreen for a more accommodating private posture,” he wrote in a note. “We’re not so sure, and the ambiguity can’t last much longer amid Trump’s five-day deadline for talks.”
Prices for the 10-year Treasury went straight down, raising yields to 4.42% from Wednesday’s 4.33%. Treasury prices and yields move in opposite directions.
Oil prices gained $3.33 to $93.65 U.S. a barrel.
Gold prices tumbled $154.10 to $4,398.20 U.S. an ounce.
