US benchmark equity indexes were lower intraday as traders dumped technology stocks, while increased tensions in the Strait of Hormuz sent oil prices higher.
The Nasdaq Composite was down 1.3% at 24,336.1 after midday Thursday, while the Dow Jones Industrial Average shed 0.9% to 49,068.4. The S&P 500 lost 0.9% to 7,076.7. Both the Nasdaq and the S&P 500 hit fresh record highs in the previous session.
Among sectors, technology saw the steepest decline, shedding 1.8% intraday, while utilities paced the gainers with a 2.4% advance.
ServiceNow (NOW) shares sank 18%, the worst performer on the S&P 500, following its quarterly results.
Shares of other major tech names were also lower, including Salesforce (CRM), down 9.3% intraday, which was the steepest decline on the Dow, while Microsoft (MSFT) fell 4.2%.
International Business Machines (IBM) followed Salesforce on the Dow, falling 9%. Late Wednesday, the technology giant maintained its full-year revenue growth outlook even as it reported first-quarter results above Wall Street's estimates.
Tesla (TSLA) declined 2.9% intraday, despite the company reporting stronger-than-expected first-quarter results. The electric vehicle manufacturer said late Wednesday that it is ramping up its capital investments, while Chief Financial Officer Vaibhav Taneja flagged a negative free cash flow for the rest of 2026.
Tesla's aggressive capital spending on artificial intelligence initiatives should boost revenue, though it may take some time before those gains materialize, UBS Securities said in a Thursday note to clients.
American Express (AXP) shares were down 4.6%, among the biggest declines on the Dow, even as the payments company reported better-than-expected first-quarter results and reiterated its full-year outlook.
West Texas Intermediate crude oil was up 3.9% at $96.60 per barrel, while Brent rose 3.6% to $105.55.
US President Donald Trump ordered the US navy to "shoot and kill any boat" placing mines in the Strait of Hormuz, he said in a social media post on Thursday.
In another post, Trump claimed that the US has "total control" over the key oil supply chokepoint, which he said was sealed "until such time as Iran is able to make a deal."
Trump extended a ceasefire with Iran earlier in the week, though he said the naval blockade of Iranian ports would continue. Iran's Islamic Revolutionary Guard Corps on Wednesday reportedly seized two tankers attempting to cross the Strait of Hormuz.
"Hopes for a resolution between the US and Iran are fading as peace talks stall," ING Bank said Thursday in a report. "If no progress is made, the market will become increasingly numb to the noise and headlines that have dictated price action recently."
US Treasury yields were higher intraday, with the 10-year rate up 1.9 basis points at 4.33% and the two-year rate rising 2.1 basis points at 3.83%.
In other company news, Comcast (CMCSA) reported higher-than-expected first-quarter results as the media and connectivity giant benefited from the Milan Cortina Winter Olympics and Super Bowl LX. The company's shares were up 8.3% intraday.
Thermo Fisher Scientific (TMO) raised its full-year outlook on Thursday as first-quarter results came in stronger than expected, even as organic growth fell short of analysts' estimates. The stock was down nearly 11%, among the steepest declines on the S&P 500.
Lockheed Martin's (LMT) first-quarter earnings decreased more than expected, while its sales fell short of market estimates. The defense contractor's shares were 5.5% lower.
Gold was little changed at $4,751 per troy ounce, while silver lost 2.2% to $76.29 per ounce.