Wall Street closed in the red on Thursday as escalating geopolitical tensions in the Middle East overshadowed corporate earnings and sent investors scrambling for safety. The Dow Jones Industrial Average led the decline with a sharp 1.62% drop, while tech-heavy indices showed relative resilience amid the uncertainty surrounding Iran and global oil supply routes.
Geopolitical Storm Clouds Gather
Today’s market action was dominated by a flurry of headlines centered on the ongoing Iran crisis. In a series of exclusive Reuters interviews, President Trump struck a defiant tone on multiple fronts, stating that if gas prices rise during the Iran operation, “they rise.” The President also renewed calls for a Netanyahu pardon and made the extraordinary claim that the U.S. “must have a role in choosing Iran’s next leader.”
The situation in the Strait of Hormuz—the world’s most critical oil chokepoint—remains fluid. China has entered talks with Iran to secure safe passage for oil and gas shipments, while Indian refiners are reportedly pivoting to prompt Russian crude as Iranian supplies become increasingly unreliable. Israel’s envoy offered a somewhat optimistic timeline, suggesting that within days, Iran’s ability to disrupt shipping would be significantly diminished.
Adding to regional concerns, the UAE’s property sector faces a potential reckoning following Iranian strikes, according to Reuters reporting. The combination of direct military action and economic uncertainty has investors on edge.
Market Performance: Dow Bears the Brunt
The major indices all finished in negative territory, though the damage was unevenly distributed:
- Dow Jones (DIA): $479.84, down 1.62% — the session’s biggest loser
- S&P 500 (SPY): $681.31, down 0.56%
- NASDAQ (QQQ): $608.91, down 0.30%
The Dow’s outsized decline reflects its heavier weighting toward industrial and energy-sensitive names, which bore the brunt of oil supply concerns. Technology stocks, while not immune to the selling pressure, proved more defensive as investors weighed the sector’s relatively lower exposure to Middle Eastern disruptions.
Nvidia shares notably fell on reports that the Trump administration is seeking greater control over AI chip exports—a development that could have significant implications for the semiconductor giant’s international sales pipeline.
Earnings Roundup: Mixed Results Across Sectors
Despite the geopolitical noise, earnings season continued with a mixed bag of results:
Winners
- Wiley (WLY): The publishing company delivered a solid beat with EPS of $0.97 versus estimates of $0.87, demonstrating continued strength in its education and research segments.
- Gaotu Techedu (GOTU): The Chinese education company reported a loss of $0.34 per share, significantly better than the expected loss of $0.55.
- Myers Industries (MYE): Posted EPS of $0.31, handily beating the $0.23 consensus estimate.
- Olaplex (OLPX): The hair care brand eked out a small beat with EPS of $0.01 versus $0.007 expected.
- Ituran Location (ITRN): The vehicle tracking company came in at $0.77, narrowly topping the $0.765 estimate.
Misses
- Kura Oncology (KURA): The biotech reported a loss of $0.92 per share, significantly worse than the expected loss of $0.62—a disappointing result for investors hoping for improved cash burn metrics.
- Evaxion Biotech (EVAX): Posted a steep loss of $1.00 per share against expectations of a $0.30 loss, raising questions about the company’s runway.
- CorMedix (CRMD): Came in at $0.61 EPS, missing the $0.83 estimate despite the company’s promising catheter lock solution business.
- Altimmune (ALT): Reported a loss of $0.27 versus the expected $0.24 loss.
Looking Ahead: Costco in Focus
After the closing bell, all eyes turn to retail giant Costco, with investors particularly focused on membership renewal rates and same-store sales metrics. In an environment of persistent inflation concerns and geopolitical uncertainty, Costco’s results could offer valuable insight into consumer spending resilience.
Meanwhile, the ongoing DHS funding impasse remains unresolved even after the Noem firing, according to Democratic lawmakers—adding another layer of political uncertainty to an already anxious market.
The Bottom Line
Thursday’s session underscored how quickly geopolitical risk can reassert itself as the dominant market narrative. With oil supply routes under threat, diplomatic tensions running high, and the administration signaling an aggressive posture toward Iran, investors should brace for continued volatility. The tech sector’s relative outperformance today suggests a flight toward companies perceived as insulated from Middle Eastern turmoil—a theme that may persist in the sessions ahead.
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