Stock Market Corrects after Reaching Fresh Highs, Falling on Musk Comments and New Iran Attacks
Stocks in the United States dipped on Thursday after fresh highs from Wednesday as the market corrected.
Quick overview
- Iran attacked vessels near the Strait of Hormuz, contributing to a decline in U.S. stock indices.
- Tesla's stock fell 3.32% after CEO Elon Musk announced significant upcoming capex spending despite strong quarterly earnings.
- The Nasdaq and Dow Jones indices dropped 0.5%, while the S&P 500 lost 0.2% amid market corrections and geopolitical tensions.
- ServiceNow and IBM also experienced sharp declines, with ServiceNow falling 13% and IBM losing 7% despite reporting revenue growth.
Iran attacked vessels near the Strait of Hormuz and Elon Musk hurt Tesla stock with comments about capex spending as U.S. stock indices slipped marginally Thursday morning.
The Nasdaq and Dow Jones indices fell 0.5% Thursday morning, and the S&P 500 dropped from a record high to lose 0.2%. Stocks are partially down due to market correction after fresh records for both the Nasdaq and S&P 500 but also because of renewed fighting in Iran around the Strait of Hormuz.
This week was supposed to be a big one for Tesla (TSLA) as they released their quarterly earnings. However, Tesla CEO Elon Musk commented about incoming major capex spending and sent the stock down by 3.32%.
Previous Highs Slightly Diminished
The stock market may be setting new records this week, but it also might not be able to hold onto them for long. Investors are likely to exercise caution after two vessels were attacked near the Iranian coast. These were a cargo vessel and a container ship, both hit by Iranian military according to reports from the British government.
The attacks may lead to further stock market decline, dropping the indices from their recent record highs. Several stocks fell sharply as the market experienced what looked like a correction. ServiceNow (NOW) fell 13% Thursday in early morning trading. The company just released Q1 earnings and announced a partnership with Google Cloud.
IBM (IBM) also fell dramatically Thursday, losing 7% after posting solid quarterly earnings but holding to its previous guidance. The company reported revenue growth of 9% from the previous year with net income of $1.22 billion. They expect their free cash flow to climb to $1 billion and their revenue to grow 5% in 2026.
Tesla (TSLA) reported quarterly earnings after the closing bell on Wednesday. Their sales increased by 15.8% and hit $22.39 billion. They also beat Wall Street estimates by 15% with their earnings per share. However, CEO Musk said the company would substantially increase their capex spending. His comments took all the momentum out of the company’s stock, causing a loss of nearly 13 points during a time when capital expenditures are a sore spot for shareholders.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save
