Wall Street’s main indexes declined over 1% on Thursday, following US President Donald Trump’s order for the Navy to shoot and kill any boat laying mines in the Strait of Hormuz. The Dow Jones Index fell over 500 points, while the tech-heavy Nasdaq dropped over 300 points.
Iran tightened its control over the Strait of Hormuz, releasing footage of commandos storming a cargo ship they claimed to have seized. Investors are showing some fatigue amid ongoing war-related risks, awaiting clarity on the conflict’s resolution.
With oil prices exceeding $100 a barrel, inflation risks persist. Data indicated a marginal increase in unemployment claims last week, while S&P Global’s flash US Composite PMI Output Index showed improvement due to stock building amid supply concerns. The earnings season has been strong, but the results reflect only one month of disruption from the Middle East conflict.
