US equity indexes traded lower ahead of Thursday's close, as technology and consumer discretionary stocks weighed amid a continuing standoff over the reopening of the Strait of Hormuz.
The Nasdaq Composite fell 1% to 24,423.1, with the Dow Jones Industrial Average down 0.4% to 49,299.9, and the S&P 500 lower by 0.4% to 7,107.2.
Shares of International Business Machines (IBM) slid 8.1%, among the steepest decliners on the Dow, following Q1 results. Software growth decelerated to 8% in constant currency from 11% in Q4 and 9% in Q3, a "potential red flag for the bears," CFRA said in a note.
Tesla (TSLA) dropped 3.5% after the electric vehicle manufacturer issued higher-than-expected 2026 capital expenditure guidance. TechCrunch reported the electric vehicle manufacturer is planning to spend $25 billion this year, compared with $8.5 billion in 2025.
Texas Instruments (TXN) soared 18%, among the biggest outperformers on the S&P 500 and the Nasdaq, after the company posted higher Q1 earnings and revenue and set out Q2 guidance above consensus.
President Donald Trump has ordered the US Navy to "shoot and kill" any boat that is laying mines in Hormuz, according to his Truth Social post on Thursday. On the same day, Iran flaunted its tightened grip over Hormuz with a video of commandos storming a cargo ship named MSC Francesca, Reuters reported.
The United States and Iran remain at an impasse, with Tehran refusing to negotiate a peace deal as long as the US Navy continues to blockade its ports and Washington refuses to lift the siege.
West Texas Intermediate crude oil futures jumped 3.6% to $96.51, and Brent crude futures advanced 3.7% to $105.58.