-- US equity indexes declined on Thursday as Iran reportedly set up an agency to control shipping in the Strait of Hormuz, and Washington, still awaiting Iran's response to its peace proposal, considered options to restart defence operations to provide safe passage for ships stranded at the critical waterway.
The Nasdaq slipped 0.1% to 25,806.20, retreating from an all-time peak of 26,036.38 intraday amid concern that a peace agreement between the US and Iran could be at risk. The S&P 500 fell 0.4% to 7,337.11 after hitting an all-time high of 7,385.02 earlier in the session. The Dow Jones Industrial Average declined 0.6% to 49,596.97.
All sectors except technology and communication services fell. Energy, materials, and industrials led the decliners.
Iran has created a government agency to vet and tax vessels seeking passage through Hormuz, an Associated Press report cited a shipping data company Thursday. Tehran has laid out a new set of rules for vessels seeking to transit the chokepoint through which about 20% of global crude oil flows, according to a document seen by CNN.
Entitled "Vessel Information Declaration," the document is an application form issued by Iran's newly created Persian Gulf Strait Authority, and it must be completed by all transiting vessels to ensure safe passage, CNN reported. The document was shared with CNN by the Lloyds List and another shipping industry source who wished to remain anonymous, according to the news report.
Meanwhile, the Trump administration is looking to restart an operation to guide commercial ships through Hormuz with naval and air support as early as this week, after Saudi Arabia and Kuwait lifted restrictions on US access to their bases and airspaces, The Wall Street Journal reported Thursday, citing Pentagon officials.
The US is still awaiting Iran's response to its peace proposal. The two countries are said to be working with mediators to formulate a one-page framework to restart talks aimed at ending the war and reopening Hormuz.
West Texas Intermediate crude oil futures rose 1.1% to $96.11, turning the corner from a decline of 3% earlier in the session. Brent crude futures added 0.1% to $101.36, off intraday declines of more than 3%.
Most US Treasury yields rose, with the 10-year up 3.4 basis points to 4.39% and the two-year climbed 4.1 basis points to 3.91%.
In economic news, employers in the US announced 83,387 job cuts in April, up 38% from March, Challenger, Gray & Christmas said Thursday. The two previous highs were 105,441 job cuts recorded in April 2025 and 671,129 in April 2020, the global outplacement firm added.
US initial jobless claims rose to 200,000 in the week ended May 2 from an upwardly revised 190,000 in the previous week, compared with expectations for 205,000 in a survey of analysts compiled by Bloomberg. The four-week moving average fell by 4,500 to 203,250.
In company news, Datadog (DDOG) raised its full-year outlook after the software maker posted Q1 results above analysts' estimates. Shares surged 31%, the top gainer on the S&P 500 and the Nasdaq.
In precious metals, gold futures edged up 0.6% to $4,724.00, and silver futures jumped 3.9% to $80.30.