US stock opened lower on Thursday, retreating from the previous session’s strong rally as investors reassessed risks tied to the fragile ceasefire between the United States and Iran and monitored fresh economic data.
Dow Jones Industrial Average fell by about 175 points, or 0.37%, while S&P 500 and Nasdaq 100 slipped 0.15% and 0.12%, respectively.
The pullback followed a sharp rebound on Wednesday, when the Dow surged more than 1,300 points, or 2.9%, while the S&P 500 climbed 2.5% and the Nasdaq Composite advanced 2.8%.
Ceasefire uncertainty weighs on sentiment
Markets remained sensitive to developments in the Middle East after US President Donald Trump agreed to pause attacks on Iran for two weeks, aiming to create space for negotiations.
The agreement included reopening the Strait of Hormuz, a critical shipping route that had been disrupted during the five-week conflict.
However, signs of strain in the ceasefire quickly emerged. Iran’s parliamentary speaker Mohammad Bagher Ghalibaf accused the US of already violating the agreement, citing Israel’s continued strikes on Lebanon, a drone incursion into Iranian airspace, and disputes over uranium enrichment.
Trump reinforced a hardline stance, stating that US military forces would remain deployed in the region until Iran fully complied with the “real agreement,” warning that any breach would prompt a major escalation.
Despite the ceasefire framework, traffic through the Strait of Hormuz has yet to normalize, with only limited vessel movement reported, adding to investor concerns over the durability of the truce.
Oil rebound adds pressure to equities
Crude prices rebounded on Thursday as uncertainty around energy shipments persisted. West Texas Intermediate futures rose about 5% to above $99 per barrel, while Brent crude climbed around 4% to above $98.
The rise in oil prices followed limited progress in restoring traffic through the Strait of Hormuz, which handles a significant share of global oil flows. The renewed increase in energy prices has added pressure to equities, particularly after the prior session’s relief-driven rally.
Economic data and stock moves in focus
Investors also digested a series of economic data releases that provided mixed signals on the US economy.
The personal consumption expenditures price index, the Federal Reserve’s preferred inflation gauge, rose 0.4% month-over-month and 2.8% year-over-year in February, in line with expectations. Core PCE, which excludes food and energy, also matched forecasts.
Separately, jobless claims for the week ended April 4 came in at 219,000, slightly above consensus estimates of 210,000. Earlier data also showed fourth-quarter US economic growth at 0.5%, below expectations of 0.7%.
Among individual stocks, Applied Digital shares fell 5% after the data center operator reported a widening third-quarter net loss. CoreWeave rose about 2.6% after announcing a $21 billion cloud deal with Meta Platforms, though gains were capped by news of a $3 billion convertible bond offering.
With geopolitical uncertainty and inflation concerns still in play, markets appear poised for continued volatility in the near term.
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