US equities pulled back from record territory on Thursday as an escalating naval standoff in the Strait of Hormuz overwhelmed a solid earnings season. The S&P 500 fell 0.4% to 7,108.97 after touching an intraday record of 7,147.78, the Nasdaq Composite dropped 0.9% to 24,438.50 — its biggest decline in a month — and the Dow slipped 0.4% to 49,309.33. Trump ordered the Navy to fire on Iranian boats laying mines in the strait and declared the US had “total control” of Hormuz, while Axios reported Iran had deployed additional mines. Brent crude surged 4% to $106.00 a barrel, extending its weekly gains as Dated Brent physical prices climbed above $107. The SOX semiconductor index extended its record run to a 17th consecutive session of gains. After the closing bell, Intel soared 19% on AI-fuelled revenue guidance that crushed estimates, while Meta and Microsoft announced plans to cut or buy out up to 23,000 jobs to offset AI spending. ASX 200 futures slipped 4 points to 8,828, with the Australian dollar at US$0.7130.

Key Takeaways

The S&P 500 fell 0.4% to 7,108.97 after touching an intraday record at 7,147.78, the Nasdaq dropped 0.9% to 24,438.50, and the Dow slipped 0.4% to 49,309.33, with the SOX semiconductor index extending its winning streak to 17 days.

Trump ordered the US Navy to “shoot and kill” any Iranian boat laying mines in the Strait of Hormuz and declared “total control” of the waterway, while Iran reportedly deployed additional mines and mediators scrambled to salvage peace talks.

Brent crude surged 4% to $106.00 a barrel — up for a fourth consecutive session — with WTI rising 0.8% to $96.60, as Hormuz disruptions keep physical markets signalling acute near-term supply tightness.

Texas Instruments surged 19.4% on strong guidance while Tesla fell 3.7% on $25B+ capex plans, IBM dropped 8.3% and ServiceNow cratered 17.7% as software stocks bore the brunt of AI-disruption fears.

Intel soared 19% after hours on AI-fuelled Q2 revenue guidance of $13.8–$14.8 billion versus the $13.07 billion estimate, while Meta and Microsoft announced cuts affecting up to 23,000 jobs to offset AI infrastructure spending.

ASX 200 futures slipped 4 points to 8,828, the Australian dollar held at US$0.7130, and Trump extended the Israel–Lebanon ceasefire by three weeks, removing a key roadblock to broader Middle East negotiations.