4:15pm: Tech stocks take hit
Wall Street plunged Thursday as Middle East tensions sent oil soaring past $100 a barrel, stoking fears of a wider conflict and rattling markets.
The Nasdaq fell 1.8% to 22,312, the Dow dropped 1.6% to 46,678, and the S&P 500 slid 1.5% to 6,673. The Russell 2000 led the declines, down 2.1% at 2,488.
Brent crude climbed as Iran escalated attacks on energy infrastructure, while Iraq closed oil port terminals after strikes hit two tankers off its coast, raising concerns over global supply disruptions.
Economic data offered a small bright spot: initial jobless claims held steady at 213,000, below expectations, suggesting the labor market remains resilient.
Political chatter added to volatility. President Trump slammed Fed Chair Jerome Powell on social media, calling for immediate rate cuts, though the Fed is expected to hold steady next week amid inflation worries fueled by rising oil prices.
Investors now turn to earnings after the bell, with Adobe and Ulta Beauty reporting results.
3:40pm: Proactive news headlines
- Northstar Gold Corp. (CSE:NSG) extended high-grade copper-gold-silver-molybdenum mineralization at its Cam Copper Mine in Ontario, supporting an upcoming NI 43-101 resource report.
- Candel Therapeutics Inc (NASDAQ:CADL) is advancing its lead cancer immunotherapy toward commercialization with new Phase 3 trials and regulatory filings while reporting strong 2025 financial results.
- 374Water Inc (NASDAQ:SCWO, FRA:8LL) received a $2.3 million purchase order from Garney Construction to deploy its PFAS-contaminated biosolids destruction technology in Olathe, Kansas.
- BioVie Inc (NASDAQ:BIVI, NASDAQ:BIVIW)’s Parkinson’s disease candidate bezisterim (NE3107) will be presented at the AD/PD 2026 annual conference in Copenhagen.
- Ideal Power Inc (NASDAQ:IPWR, FRA:5ILA) is progressing toward commercialization of B-TRAN-enabled products with global partnerships, a growing patent portfolio, and strategic EV and data center initiatives.
- G Mining Ventures Corp (TSX:GMIN, OTCQX:GMINF, FRA:W97) more than tripled its proven and probable gold reserves in 2025 to 6.52 million ounces following additions from the Oko West project in Guyana.
- Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF, FRA:1SS) secured a three-year, $175,000 subscription deal for its ARitize3D platform, providing 3D modeling and AR services for 2,500 e-commerce products.
2:35pm: Market movers
- Rivian Automotive Inc (NASDAQ:RIVN) unveiled pricing and specs for its upcoming R2 midsize electric SUV, starting around $45,000, with the first deliveries of the higher-end Performance trim expected in spring 2026.
- Petco Health and Wellness Company, Inc. shares surged about 30% after Jefferies upgraded the pet retailer to “Buy,” citing improving liquidity, profitability, and growth prospects heading into fiscal 2026.
- Dollar General Corp (NYSE:DG) shares fell more than 4% after the discount retailer issued fiscal 2026 guidance below Wall Street expectations despite posting stronger-than-expected fourth-quarter results.
- UiPath Inc (NYSE:PATH) reported fourth-quarter revenue and earnings that beat estimates, driven by solid subscription growth and improving profitability.
- Bumble Inc (NASDAQ:BMBL) shares jumped more than 36% after the dating-app company reported quarterly revenue slightly above expectations and signaled early stabilization in its user base.
- Northstar Gold Corp. (CSE:NSG) reported drill results extending the high-grade polymetallic system at its Cam Copper Mine in Ontario as it prepares a NI 43-101 technical report and resource estimate.
1:05pm: Dollar at 3-month high
The US dollar has hit a fresh three-month high, noted IG's Chris Beauchamp.
“Investors have reverted to their usual safe havens, buying the dollar, with the view bolstered by the fact that also gets them increased exposure to an oil producing nation," Beauchamp commented.
"This helps to explain in part why the greenback continues to do well against the yen.
"The dollar’s strength means silver and gold remain out of favour too, with a fresh test of $5000 looking likely.”
12:00pm: Housing starts rise
US housing starts rose 7.2% in January, driven by a nearly 30% surge in multifamily construction, while single-family starts fell 2.8%.
Analysts at Wells Fargo cautioned that the multifamily gain may overstate strength, as monthly starts are often volatile and subject to revisions.
Meanwhile, single-family builders appear to be scaling back amid elevated inventories relative to sales. Permits for both single-family and multifamily units also declined, signaling that housing starts could remain subdued in the months ahead.
11:00am: Oil prices keep climbing
Crude prices keep climbing, stoking worries that inflation might stay stubbornly high and shaping how the Federal Reserve approaches its monetary policy.
Markets are now pricing in just a single interest rate cut later this year, a shift has sent US Treasury yields higher across the board, according to Bas Kooijman, CEO and Asset Manager of DHF Capital.
"While recent economic data continue to point to a resilient US economy, the near-term direction of equity markets is likely to remain dominated by geopolitical developments and energy prices," Kooijman commented Thursday.
"The latter could create some headwinds for the economy in case of prolonged disruptions in the Middle East. While energy and defense stocks could benefit from such conditions, concerns about inflation could continue to exert selling pressure on overall indices."
9.55am: Stocks open lower, led by Nasdaq
US stocks opened lower as oil prices spiked north again.
The Dow Jones dropped almost 600 points or 1.2% in initial trades. The S&P 500 fell 1.1% and the Nasdaq began with a fall of 1.4%.
Biggest S&P fallers were led by consumer and travel stocks, with Dollar General down over 8% and cruise operators Carnival and Royal Caribbean also sharply lower.
Financials and airlines were also weak, with Morgan Stanley, Goldman Sachs and Citigroup sliding, while Southwest and United Airlines fell as travel-related names came under pressure.
A likely catalyst for the latest gains in oil prices was Iran's new Supreme Leader Khameni Jnr saying the Strait of Hormuz "should stay closed".
Front-month Brent crude is back up above $99 a barrel, with US WTI above $94.
Data from prediction platform Polymarket showed an 80% probability that NYMEX crude oil futures will hit $100 by 31 March, with a 57% chance of reaching $110 and a 44% chance of $120. That has risen from earlier.
Elsewhere, reports revealed that many major banks are taking measures to protect staff in the Gulf, following warnings from Iran’s joint military command that banks and financial institutions could become targets after a reported strike linked to Bank Sepah.
Citi told staff to leave buildings in Dubai’s financial district, while JPMorgan also moved Middle East staff to remote working.
8.15am: Dow Jones set to fall as oil prices spike again, raising inflation worries
Wall Street is pointing lower ahead of Thursday's open, though US futures have pulled back from their worst levels of the morning as investors caught up with the overnight escalation in the Middle East and oil prices.
The Dow Jones was down 0.6%, the S&P 500 and Nasdaq futures were both off 0.5%.
This followed a broadly flattish session for US stocks, with the S&P 500 finishing only around six points in the red, down 0.08%, while the Nasdaq ended up 0.08%, with the Dow Jones sliding 0.6%.
Oil prices surged overnight before pulling back, with West Texas Intermediate jumping above $95 before softening to $93.28, while Brent crude topped $100 overnight before easing a little.
Market analysts said the main catalyst for that has been further attacks on shipping as Iran had expanded its retaliation across the Gulf region, with two tankers and a container vessel struck in the Gulf in the early hours (including the Thai-flagged vessel pictured), as well as reports that Oman has evacuated ships from its main export terminal.
Kenny Polcari, market strategist at Slatestone Wealth, said reports of strikes toward targets in Dubai and Kuwait were "raising fears that the conflict may now be spreading beyond military targets and toward economic infrastructure".
On the mood, he said: "Today we are forced to process energy risk, food supply risk, and geopolitical escalation all at the same time – the result is exactly what we are seeing this morning: a broad risk-off tone across global markets."
Inflation is a big concern, especially what next month's CPI report will show, given the recent spike in oil prices and the ripple effects it could have on gasoline, manufacturing, transportation, food costs and housing.
On the Fed: "Under the circumstances – with oil prices rising and geopolitical uncertainty building – I suspect Jay Powell might actually sound a bit more hawkish when he steps up to the podium."
"If there's one thing markets hate more than anything else – it's uncertainty."