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Equities Fall Intraday Amid Report on Restrictive Hormuz Draft Plan

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Equities Fall Intraday Amid Report on Restrictive Hormuz Draft Plan

US benchmark equity indexes fell intraday after a report claimed that a draft plan to reopen the Strait of Hormuz would likely come with restrictive conditions.

The Dow Jones Industrial Average was down 0.7% at 53,946.3 after midday Thursday, while the S&P 500 fell 0.2% to 7,706.2. The Nasdaq Composite was down 0.1% to 26,344.6. On Wednesday, the Dow recorded a new all-time high.

All sectors were in the red, except energy and technology.

Iran and Oman are reportedly close to finalizing a framework regarding the Strait of Hormuz. But US and Israeli ships would be blocked from moving through the strategic waterway, Iranian state news outlet Fars reported Thursday, according to CNBC.

"The real hinge point now becomes the trajectory of US-Iran discussions, because meaningful progress is essential before disrupted energy flows can realistically resume," ING Bank said in a report Thursday.

West Texas Intermediate crude oil was up 3.6% at $77.95 a barrel intraday, while Brent rose 4.4% to $82.93.

Treasury yields were higher, with the two-year rate rising 6.4 basis points to 4.2% and the 10-year rate up 5.5 basis points to 4.7%.

Honeywell Aerospace's (HONA) fiscal second-quarter earnings fell year-over-year as revenue missed estimates. The stock plunged 20%, the worst performer on the S&P 500.

AppLovin (APP) shares tumbled 18% intraday, the second-biggest decline on the benchmark equity index, after the mobile technology company reported a second-quarter revenue miss late Wednesday.

Datadog (DDOG) followed AppLovin on the S&P 500, down 16%, even after the software maker reported a second-quarter beat and raised its full-year outlook.

Spot gold fell 0.1% to $4,241.80 per troy ounce, while silver declined 1.2% to $61.57 per ounce.

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