Stocks fell on Thursday, led by falling software prices and higher oil prices, as investor uncertainty over the path of the Iran war hovered over the market.
The S&P 500 traded down 0.41% to close at 7,108.40, after earlier hitting a new all-time intraday high. The tech-leaning Nasdaq Composite fell 0.89% to end at 24,438.50. He also set a new all-time session record. The Dow Jones Industrial Average lost 179.71 points, or 0.36%, to end at 49,310.32.
Shares of IBM and ServiceNow fell more than 8% and nearly 18%, respectively, after the companies reported their latest quarterly results. While IBM beat the top and bottom lines, the firm maintained its guidance for the full year, disappointing investors. For ServiceNow, the company’s subscription revenue growth was hampered by the conflict in the Middle East.
Other software stocks followed suit, moving into the red, SEEbiz reports. . Microsoft, for example, is down about 4%. Palantir Technologies fell more than 7%, while Oracle fell roughly 6%. The iShares Expanded Tech-Software Sector ETF ( IGV ) also fell about 6%.
“Stocks are trying to find their footing after an incredible recovery from March lows,” said Chris Kampitsis, managing director of Barnum Financial Group’s The SKG Team. “We expect stocks to remain range-bound for the near term as markets await their next catalyst.”
While Kampitsis noted that the market is ultimately “becoming less sensitive to Iran headlines,” the war continued to weigh on stocks on Thursday as it has now turned into a US-Iran naval conflict amid a fragile truce. Both nations are fighting for control of the Strait of Hormuz and seized commercial ships this week.
