US stocks fall from their records as oil prices yo-yo

U.S. stock markets retreated from record levels on Thursday amid volatility in oil prices, driven by uncertainty over a potential deal to end the Iran war. Brent crude oil prices settled at $100.06, down 1.2% from earlier peaks exceeding $115, after Iran reviewed U.S. proposals for ending hostilities. The price saw sharp fluctuations, briefly dipping near $96 after Pakistan’s Foreign Ministry suggested an agreement could be imminent, though it later recovered to near $102. The S&P 500 slipped 0.4% from its all-time high, while the Dow Jones Industrial Average fell 323 points (0.6%) and the Nasdaq dropped 0.2%. Wall Street remains sensitive to geopolitical risks, particularly the potential reopening of the Strait of Hormuz, which could ease oil supply disruptions. However, Iran’s creation of a new agency to tax and vet vessels passing through the strait adds uncertainty, potentially raising shipping costs. Despite the market’s sensitivity to oil prices, strong corporate earnings reports provided support. Datadog surged 30.3% after beating profit expectations, while Albemarle rose 4.9% and Axon Enterprise climbed 9.6% following revenue forecasts tied to counter-drone product growth. In contrast, Whirlpool plunged 12.5% after reporting weaker-than-expected results, citing rising costs and consumer confidence declines, while Shake Shack dropped 28.7% after missing analyst projections. McDonald’s stock remained nearly flat despite revenue exceeding expectations, though CEO Chris Kempczinski highlighted high gasoline prices as a persistent challenge. The market’s performance reflects a mix of geopolitical caution and corporate resilience, with earnings reports offsetting some of the volatility caused by oil price swings and Iran war negotiations.