Technology stocks were falling pre-bell Thursday, with the State Street Technology Select Sector SPDR Fund (XLK) down 2.1% and the State Street SPDR S&P Semiconductor ETF (XSD) 3.2% lower.
Broadcom (AVGO) stock was down more than 14% after the company reported fiscal Q2 revenue that missed analysts' expectations.
Oil prices retreated early on Thursday as Israel and Lebanon agreed to a ceasefire, one of Iran's key demands for agreeing for a deal of its own to end the war with the United States and reopen the Strait of Hormuz.West Texas Intermediate crude oil for July delivery was last seen down US$2.98 to US$93.04 per barrel, while August Brent oil was down US$2.97 to US$94.84.Reuters reported Israel and Lebanon's truce agreement is contingent on the evacuation of Iran-backed Hezbollah militants leaving southern Lebanon and ending its fight against Israel, which has taken control of the country's south.The deal may raise the odds of the United States and Iran will come to an agreement to end their war, which is now in its fourth month and flared up again this week. Iran blocked the Strait of Hormuz at the start of the war, choking off most oil exports from the Persian Gulf nations that supplied a fifth of daily demand.The lack of Persian Gulf supply has left the Asian nations struggling to replace the lost barrels, while U.S. exports have surged, cutting into its inventories."Crude oil trades softer but remains near the upper end of Brent's recent USD 90-100 range after the Israel-Lebanon ceasefire announcement. The move follows another day of US and Iranian military action across the region. While flows through the Strait of Hormuz remain severely disrupted, global supply buffers continue to shrink. In the US, a sixth consecutive weekly inventory draw saw stockpiles at Cushing, the delivery hub for WTI futures, fall to 22.4 million barrels, edging closer to levels widely considered near the operational minimum," Saxo Bank noted.
Oil fell as a conditional ceasefire between Israel and Lebanon offered to ease the way toward a US-Iran peace deal, even as the truce was marred by ongoing clashes, Bloomberg reported Thursday.Brent futures retreated 2.2% below US$96 a barrel in thin trading volumes, snapping three days of gains in London. Still, Iran said there had been no recent progress in talks with the US over an interim peace deal, while fighting persisted in Lebanon despite Washington's declaration of a ceasefire subject to Tehran-backed Hezbollah stopping hostilities.Washington and Tehran have sketched out a framework to extend their truce by two months and reopen the Strait of Hormuz, but negotiations are stalling and sporadic fighting has resumed. Iran insists a deal with the US requires a ceasefire in Lebanon but Trump said he'd like to keep the two separate.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)