Instability in the Middle East drags down US stocks.

Photo caption — Traders at the New York Stock Exchange, USA. Photo: THX/VNA

The fact that world crude oil prices remain above $100 per barrel, along with concerns about supply chain disruptions caused by artificial intelligence (AI) in the software sector, has put significant pressure on key indices.

At the close of trading, the Dow Jones Industrial Average fell 179.71 points, or 0.36%, to 49,310.32. The S&P 500 lost 29.50 points, or 0.41%, to 7,108.40. The Nasdaq Composite suffered the biggest drop, losing 219.06 points, or 0.89%, closing at 24,438.50.

The stock market decline occurred amid Iran's tightening control over the Strait of Hormuz and its declaration that it would not reopen it as long as the US continued its blockade of its ports. This announcement pushed Brent crude oil prices up to $105.07 per barrel. Jay Hatfield, CEO of asset management firm Infrastructure Capital Advisors, suggested that investors were weighing corporate earnings reports against news of the ongoing conflict. He argued that after a prolonged period of growth, many investors were looking to reduce their asset holdings, and the ongoing conflict presented a plausible reason to do so.

The first-quarter earnings reporting season showed that 82.1% of the 123 companies that released results exceeded analysts' expectations. However, there was significant divergence. The S&P 500 technology index was the worst-performing group of the session, falling 1.47%.

In this session, IBM's stock price fell 8.25% after software revenue growth slowed. Similarly, ServiceNow's stock saw a sharp 17.75% drop due to delays in government contracts in the Middle East. These results revived concerns that traditional business models in the software industry could be disrupted by new AI tools. In other news, Meta plans to cut 10% of its workforce, or approximately 8,000 employees, next month, causing its stock price to fall 2.3%. Tesla also lost 3.56% of its value after announcing it would increase its spending plan to over $25 billion this year.

Forecasting future market developments, experts warn that investor confidence could quickly be shaken if the conflict in the Middle East continues. According to S&P Global, the US Purchasing Managers' Index (PMI) has risen this month, but largely due to businesses increasing inventory stockpiles amid concerns about supply shortages and rising prices. Chris Williamson, an economist at S&P Global, noted that the eurozone is also facing deep economic difficulties from the conflict, which will add further pressure on global policymakers. Analysts believe the market will remain volatile as long as peace negotiations between the US and Iran remain deadlocked and inflationary pressures from energy prices show no signs of easing.

In Vietnam, at the close of trading on April 23, the VN-Index rose 13.06 points (0.70%) to 1,870.36 points, while the HNX-Index fell 2.13 points (0.83%) to 253.23 points.

Source: https://baotintuc.vn/kinh-te/bat-on-tai-trung-dong-keo-lui-chung-khoan-my-20260424071937527.htm