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UK Stocks Drop on Renewed US-Iran Tensions

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Britain's FTSE 100 closed Thursday trading 0.75% in the red amid increased uncertainty surrounding ceasefire talks between the US and Iran after the two sides traded fresh strikes.

Renewed instability in the Middle East kept investors on edge after the US struck military targets in Iran, while Tehran launched missiles toward a US air base in Kuwait in retaliation. The developments pushed oil prices higher, raising concerns over renewed inflationary pressures globally

Back home and in corporate news, SSE (SSE.L) delivered earnings growth for fiscal 2026 and raised its full-year dividend to 0.687 pound sterling per share from 0.642 pound per share, while its adjusted capital investment jumped 20% to 3.6 billion pounds, mainly in its electricity transmission business, SSEN Transmission. The utility fell 1.03% at close.

"We met all our financial and operational targets and delivery of our fully-funded [33 billion-pound] investment plan to 2030 - focusing on Networks, Renewables and Flexibility - is well under way," Chief Executive Martin Pibworth said. "That investment is central to long‑term value creation."

Meanwhile, Johnson Matthey (JMAT.L) reported a loss for the year ended March 31, 2026, compared with a profit a year ago, while keeping its total dividend. For fiscal 2027, it anticipates low to mid single digit percentage growth in group underlying operating profit at constant precious metal prices and constant currency. The chemicals company edged down 0.18%.

Johnson Matthey also agreed to buy US-based selective catalytic reduction catalysts manufacturer Cormetech for an enterprise value of $360 million. Closing of the deal is expected in June or July, subject to regulatory approvals.

On the economic front, UK vehicle output declined 1.2% year over year to 58,513 units in April, while exports rose 0.8%, according to data from the Society of Motor Manufacturers and Traders. Chief Executive Mike Hawes said the latest figures "suggest production is stabilising, albeit at reduced levels, when the ambition remains to grow the sector."

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US Equity Indexes Edge Higher as Crude Oil Slumps, Tech Giants Take Breather

US equity indexes ground higher amid a slump in crude oil prices as investors parsed ongoing talks to end the war against Iran and as tech mega-cap names consolidated.The Dow Jones Industrial Average traded up 0.4% to 50,644.28 on Wednesday. The Nasdaq Composite edged up less than 0.1% to 26,674.74, and the S&P 500 climbed less than 0.1% to 7,520.36. Both the Nasdaq and the S&P 500 were declining earlier in the day.Consumer discretionary, consumer staples, and communication services topped the gainers at the close. Energy and financials led the decliners. Among the stocks with a market capitalization of more than $200 billion, seven of the ten worst performers were technology companies, led by Qualcomm (QCOM) and Arm (ARM).The memorandum of understanding being negotiated between Tehran and Washington will call for US forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for reopening the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television. The US denied claims that maritime traffic through the Strait of Hormuz could return to normal within a month of the Iran deal, Bloomberg reported.During an ongoing Cabinet meeting on Wednesday, President Donald Trump said he won't be rushed into a deal, warning that Iran's efforts to outlast him won't work because he doesn't "care about the midterms," CNN reported."Iran is very much intent; they want very much to make a deal. So far, they haven't gotten there ... We're not satisfied with it, but we will be. Either that, or we'll have to just finish the job," Trump said, without elaborating, according to a report from Reuters. "The deal has got to be perfect," he added, insisting that no single country would have control over Hormuz.West Texas Intermediate crude oil futures sank 4.8% to $89.35, and Brent crude futures slumped 4.7% to $94.91.Most US Treasury yields fell, with the 10-year down one basis point to 4.48%. The two-year slipped 1.5 basis points to 4.04%.In economic news, Redbook US same-store sales jumped 9% from a year earlier in the week ended May 23 after an 8.1% gain in the prior week. "Demand for a wide variety of summer, home and garden, and seasonal apparel products was the main focus for most consumers," Redbook said.The Dallas Federal Reserve's monthly general business services index improved to minus 7.7 in May from minus 9.9 in April, versus the minus 6.0 anticipated.The Richmond Fed's monthly manufacturing index rose to 13 in May from 3 in April, more than the 4 estimate in a Bloomberg-compiled survey.In company news, Boston Scientific (BSX) shares sank 12%, the worst performer on the S&P 500, after Chief Executive Mike Mahoney said at an industry conference that this year has been "a bit more of a challenge" than anticipated. Stifel adjusted its price target on Boston Scientific shares to $75 from $85 while maintaining its buy rating, a move mirrored by Goldman Sachs.Zscaler (ZS) stock plunged 32%, the steepest decline in the Nasdaq, after the company issued a fiscal Q4 revenue outlook that missed analysts' expectations. Zscaler stock remains in the penalty box until further evidence of traction emerges in the security operations business, new sales leader roles are filled, and the operating structure improves, Morgan Stanley said in a research report.In precious metals, gold futures dropped 1.1% to $4,452.1, and silver futures slumped 2.3% to $74.87.

Dow JonesNasdaq CompositeS&P 500$BSX$ZS
Asia Markets

US Equity Indexes Trade Mixed Amid Sharp Sell-Off in Crude Oil

US equity indexes traded mixed but were off session lows amid a sharp decline in crude oil prices and a retreat in government bond yields.The Dow Jones Industrial Average rose 0.4% to 50,675.1 after midday on Wednesday. The Nasdaq Composite declined 0.2% to 26,596.5, and the S&P 500 was down 0.1% at 7,509.9. Both the Nasdaq and the S&P 500 traded lower earlier in the session.Energy and financials led the decliners intraday, while consumer discretionary and consumer staples topped the gainers. Technology recovered partially from intraday declines.The memorandum of understanding being negotiated between Tehran and Washington will call for US forces to withdraw from Iran's vicinity and lift the blockade of Iranian ports in return for reopening the Strait of Hormuz to pre-war levels, CNN reported, citing Iranian state television. The US denied claims that maritime traffic through the Strait of Hormuz could return to normal within a month of the Iran deal, Bloomberg reported.During an ongoing Cabinet meeting on Wednesday, President Donald Trump said he won't be rushed into a deal, warning that Iran's efforts to outlast him won't work because he doesn't "care about the midterms," CNN reported.West Texas Intermediate crude oil futures dropped 4.3% to $89.85, and Brent crude futures slumped 4.1% to $95.54.Most US Treasury yields fell, with the 10-year down 1.6 basis points to 4.47% and the two-year lower by 2.1 basis points to 4.03%.In economic news, Redbook US same-store sales jumped 9% from a year earlier in the week ended May 23 after an 8.1% gain in the prior week. "Demand for a wide variety of summer, home and garden, and seasonal apparel products was the main focus for most consumers," Redbook said.The Dallas Federal Reserve's monthly general business services index improved to minus 7.7 in May from minus 9.9 in April, versus the minus 6.0 anticipated.The Richmond Fed's monthly manufacturing index rose to 13 in May from 3 in April, more than the 4 estimate in a Bloomberg-compiled survey.In company news, Boston Scientific (BSX) shares sank 12%, the worst performer on the S&P 500, after Chief Executive Mike Mahoney said at an industry conference that this year has been "a bit more of a challenge" than anticipated. Stifel adjusted its price target on Boston Scientific shares to $75 from $85 while maintaining its buy rating, a move mirrored by Goldman Sachs.Zscaler (ZS) stock plunged 31%, the steepest decline in the Nasdaq, after the company issued a fiscal Q4 revenue outlook that missed analysts' expectations. Zscaler stock remains in the penalty box until further evidence of traction emerges in the security operations business, new sales leader roles are filled, and the operating structure improves, Morgan Stanley said in a research report.In precious metals, gold futures dropped 1.4% to $4,440.1, while silver futures dropped 2.3% to $74.82.

Dow JonesNasdaq CompositeS&P 500$BSX$ZS
Asia Markets

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM edged higher and IVV fell. Actively traded Invesco QQQ Trust (QQQ) fell 0.3%.US equity indexes traded mixed amid a decline in crude oil prices and government bond yields.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each lost about 1%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) was 1% lower; iShares US Technology ETF (IYW) fell 1%, and iShares Expanded Tech Sector ETF (IGM) was down 0.7%.The State Street SPDR S&P Semiconductor (XSD) declined 2.7%, and iShares Semiconductor (SOXX) eased 2.3%.FinancialThe State Street Financial Select Sector SPDR (XLF) fell 0.9%. Direxion Daily Financial Bull 3X Shares (FAS) declined 2.9%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), climbed up 3%.CommoditiesCrude oil fell 4.2%, and the United States Oil Fund (USO) slipped 3.7%. Natural gas rose 3.9%, and the United States Natural Gas Fund (UNG) was up 4.4%.Gold on Comex dipped 1.2%, and the State Street SPDR Gold Shares (GLD) shed 1.5%. Silver fell 2.1%, and iShares Silver Trust (SLV) eased 3.3%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) gained 1.4%. The Vanguard Consumer Staples ETF (VDC) rose 1.4%, and iShares Dow Jones US Consumer Goods (IYK) was up 1.5%.The State Street Consumer Discretionary Select Sector SPDR (XLY) rose 1.8%. VanEck Retail ETF (RTH) gained 0.7%, and the State Street SPDR S&P Retail (XRT) added 1.5%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.2%, iShares US Healthcare (IYH) added 0.2%, and Vanguard Health Care ETF (VHT) was up 0.2%. IShares Biotechnology ETF (IBB) gained 0.4%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) lost 0.1%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were marginally higher.CryptocurrencyIn midday activity, bitcoin (BTC-USD) fell 1.3%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) dipped 1.5%, ProShares Ether ETF (EETH) was down 0.3%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH