Wall Street falls, geopolitics take precedence over results

The New York Stock Exchange closed in the red on Thursday, April 23, weighed down by investors’ nervousness amid growing uncertainties in the Middle East while also monitoring corporate results.

At the end of a day that saw a double record for the Nasdaq and the S&P 500, those indices both declined by 0.89% and 0.41%, respectively. The Dow Jones fell by 0.36%.

According to Art Hogan of B. Riley Wealth Management, there is currently a tug-of-war between the positive results, which have been better than expected so far, and the lack of improvement in news from the Strait of Hormuz.

Oil prices continued to rise, with Brent crude exceeding $100 per barrel because of disappointment over the failure to reopen the Strait of Hormuz and the tense anticipation of future negotiations between Washington and Tehran.

President Donald Trump declared that he has “all the time in the world” regarding the tensions in the Middle East, where the ceasefire has been hanging by a thread for the past two weeks.

Various Iranian media reported explosions in Tehran, and the Israeli Defense Minister expressed readiness to reignite the conflict. However, a security source from Iran stated to AFP that the army was not attacking Iran.

Bond interest rates and oil prices remain uncomfortably high, noted Adam Turnquist of LPL Financial.

The 10-year yield of U.S. bonds increased to 4.32%, compared to 4.30% the previous day.

Despite the decline in stock indices, analysts from Briefing.com suggest that the recent drop should be put into perspective. For example, the Nasdaq exhibited a 14.2% increase for the month before today’s session, making it vulnerable to profit-taking.

Investors are closely watching the quarterly performances of companies, where Texas Instruments, specializing in electronic components, surged by over 20% to $282.23 with an expected net profit per share between $1.77 and $2.05 for this quarter.

ServiceNow, a software publisher, lost 17.59% despite a 22% increase in revenue in the first quarter. Adobe and Oracle also experienced declines.

Even with better-than-expected results, electric vehicle specialist Tesla was penalized for its projected increased expenses, estimated at $25 billion this year, leading to a 3.56% drop in its stock price to $373.72.

Regarding economic indicators, weekly jobless claims slightly exceeded expectations, but it was noted that the demand remains low compared to previous standards.

Source: AFP/VNA/CVN

(Fact Check: The article discusses the impact of geopolitical tensions on the stock market following uncertainties in the Middle East and issues related to oil prices and bond interest rates.)