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The Markets
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Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Tech

Dow, Nasdaq retreat as software stocks weigh and energy prices jump

Oil prices climbed on the back of the US seizing three Iranian ships some way outside the Strait of Hormuz

4:20pm: Intel due up

Wall Street finished the session on a softer note as tech weakness and geopolitical oil jitters weighed on sentiment heading into a key earnings update from Intel.

The Dow Jones Industrial Average slipped about 0.4%, while the S&P 500 also eased 0.4%. The tech-heavy Nasdaq Composite underperformed, falling 0.9% as software and growth names came under pressure.

The tone in equities was largely driven by a pullback in software stocks, which dragged on the broader tech complex. One of the more closely watched headlines came from Meta Platforms, which announced further workforce reductions as it continues to redirect resources toward artificial intelligence initiatives. The stock still ended the day down roughly 2.4%, reflecting investor caution around restructuring costs even as the AI strategy remains a long-term focus.

Energy markets, meanwhile, moved in the opposite direction. Oil prices surged on renewed concerns over escalating tensions involving Iran, pushing Brent crude futures back above $105 a barrel, while West Texas Intermediate climbed past $96. The move added a layer of inflationary concern to an already cautious risk backdrop.

All eyes now turn to after-the-bell earnings from Intel Corporation, with investors looking for updates on demand trends in the semiconductor space and any forward guidance that could help stabilize sentiment across chipmakers.

3:50pm: Proactive NA headlines

3:00pm: Market movers

1:55pm: Durable breakout coming

Despite today’s drop, evidence is building for a durable breakout with risk appetite back on the table driven by a resurgent tech sector.

“Relentless buying pressure has extended the S&P 500’s rally above the 7,000-point milestone,” said LPL Financial’s Adam Turnquist.

“After a 115-day hiatus from new highs, the sector has finally reached record-high territory. Semis are leading (bullish) as software edges closer to breaking out from a double bottom. Mega caps have also had a strong showing, echoing the rotation back into big tech in April 2025.”

12:25pm: Investor hopes alive

“Markets stand or fall these days on headlines about negotiations," IG's Chris Beauchamp said.

"Today’s headline suggesting a breakthrough had become more likely was sufficient to engender a modest bounce in equity markets.

"Though until talks actually begin, bullish sentiment is likely to remain in check, while anxious monitoring of flight movements shows that US equipment continues to pour into the Middle East.”

11:45am: US PMI rises in April

US business activity picked up in April, according to S&P Global’s flash Purchasing Managers’ Index (PMI) data.

The flash composite PMI rose to 52.0, signaling modest expansion and an improvement from the prior reading. The manufacturing sector led the gains, with the PMI rising to 54.0, beating expectations of 52.5. Services activity also improved, with the services PMI coming in at 51.3, above the consensus forecast of 50.6.

Readings above 50 indicate expansion, suggesting both manufacturing and services sectors continued to grow, with momentum slightly stronger than economists had anticipated.

10:50am: Tesla becoming 'physical AI stalwart'

Tesla reported its FY1Q26 results which featured beats on the top and bottom lines as the company continues to see improved demand stabilization for its vehicle fleet while continuing to aggressively invest its in autonomous strategy to capture the AI opportunity taking place front and center.

"Tesla is morphing into a physical AI stalwart," said Wedbush's Dan Ives. "(T)he path is here and it requires more CapEx."

Tesla now expects capital expenditures to exceed $25 billion in 2026, up from the roughly $20 billion outlook it gave last quarter, Ives noted.

Shares of Tesla were down nearly 3% on Thursday morning.

10am: Dow and Nasdaq dip at open, ServiceNow, Freeport-McMoRan and IBM fall most

US stocks have joined in with European peers and opened lower.

The Dow Jones and Nasdaq are both down 0.3% with the S&P 500 slipping 0.1%.

Biggest fallers on the S&P are all on the back of earnings: ServiceNow, Freeport-McMoRan and IBM, all down over 10%. Tesla is down 2.3%.

At the other end, United Rentals, Texas Instruments, West Pharmaceutical Services and Molina Healthcare are all up 10% or more.

7.30am: Futures point to softer open, as Tesla and IBM weigh

US stock futures are pointing to a softer open on Thursday, as oil prices climbed on the back of the US seizing three Iranian ships some way outside the Strait of Hormuz.

The Dow Jones was seen heading down 0.6%, while futures for the S&P 500 and the Nasdaq were both off 0.4%.

Markets finished the prior session on a strong note, with the Nasdaq marching at the front up 1.6% to close at a new record high 24,658, powered largely by strength in semiconductor stocks, with the S&P 500 rising 1.1% to its own all-time high as it closed at 7,138. The Dow Jones lagged, but delivered a gain of 0.7% as it ended at 49,490.

The dollar was firmer on safe-haven demand, while WTI crude oil rose 1.1% just below $94 a barrel, up from below $85 at the end of last week.

US Central Command confirmed three more Iranian vessels had been intercepted, taking the total blocked by the blockade to 31.

The US Navy was reported to have redirected the three ships away from positions near India, Malaysia and Sri Lanka, in what analysts said was the first time the naval blockade had reached beyond the Strait of Hormuz, and comes after two container ships were stopped by Iranian forces the day before.

There seemed to be little progress on talks with Iran either, with President Masoud Pezeshkian saying Tehran wants "dialogue and agreement" but the US "breach of commitments, blockade and threats are the main obstacles to genuine negotiations”, while lead negotiator Mohammad Ghalibaf said it is “not possible to reopen the Strait of Hormuz considering all the blatant violations of the ceasefire”.

For investors, earnings in focus today include Tesla's numbers released overnight, with the shares down 3% in premarket trading despite earnings beating Street forecasts.

IBM also beat on quarterly numbers, but the outlook seemed to disappoint, with shares down almost 7% premarket,m

Results are due later from names including American Express, Thermo Fisher, NextEra Energy, Union Pacific, Honeywell, Lockheed Martin, Sanofi, Comcast, Blackstone and Freeport McMoRan. Intel and SAP are due after the close.

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