BY Rosemary
U.S. equities moved cautiously on Thursday as investors digested a mixed slate of corporate earnings while oil prices climbed on renewed concerns about a potential confrontation between the United States and Iran. Market participants weighed solid results from some major companies against cautionary guidance and broader economic uncertainties.
The S&P 500 edged down 0.2% in morning trading, on track for its first loss in four sessions. The Dow Jones Industrial Average fell 184 points, or 0.4%, while the Nasdaq composite slipped 0.1% as of 10:15 a.m. Eastern Time. Trading reflected a combination of profit-taking, sector rotation, and investor sensitivity to geopolitical risks.
Among the most notable movements was Booking Holdings, the company behind Booking.com, Priceline and OpenTable. Its shares dropped 7.1%, despite reporting a quarterly profit that slightly exceeded analyst expectations. Investors remain concerned that competitors leveraging artificial-intelligence technology could disrupt the online travel industry, potentially siphoning customers in the coming years. The stock has already lost roughly 25% of its value so far this year, reflecting mounting investor anxiety over technological disruption.
Worries about artificial intelligence have rippled across multiple sectors, affecting companies in software, legal services, logistics, and beyond. Analysts have described the market’s reaction as unusually abrupt, with investors punishing firms perceived as vulnerable to AI-driven competition in what has been likened to a “shoot first, ask questions later” mentality.
Carvana, the auto retailer, fell 5.3% despite reporting quarterly profits above expectations. Investors appeared focused on profit margins per vehicle, which came in lower than anticipated, highlighting concerns that higher revenues do not necessarily translate into proportionate earnings.
Meanwhile, Walmart Walmart provided support to the market, rising 2% after fluctuating in premarket trading. The retail giant delivered stronger-than-expected results for the close of its fiscal year but tempered investor enthusiasm with a profit forecast for the upcoming year that fell short of analysts’ projections.
E-commerce company eBay climbed 2.8% after exceeding expectations for both revenue and profit. In addition, eBay announced it would acquire the secondhand fashion platform Depop from Etsy for approximately $1.2 billion in cash. The acquisition is expected to help eBay attract younger customers and expand its footprint in the growing resale market.
Energy stocks led gains as crude oil prices increased amid geopolitical concerns. Benchmark U.S. crude added 1.8% to $66.19 per barrel, while Brent crude rose 1.2% to $71.20. Rising oil prices were driven by fears that tensions between the United States and Iran could escalate, potentially disrupting global oil supply. President Donald Trump has increased pressure on Iran over its disputed nuclear program, raising investor awareness of the risk that any conflict could constrict the flow of oil from one of the world’s largest reserve holders.
Occidental Petroleum shares surged 7.3% following a stronger-than-expected quarterly profit report, highlighting the sensitivity of energy stocks to both market fundamentals and geopolitical developments.
In the bond market, Treasury yields held steady after reports indicated that U.S. weekly initial unemployment claims declined slightly, suggesting that the pace of layoffs may be slowing. The yield on the 10-year Treasury remained at 4.09%, unchanged from the previous session. A stable job market could encourage the Federal Reserve to maintain its current stance on interest rates, delaying further cuts until inflation shows clearer signs of moderation. However, rising oil prices could put
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