Wall Street opened on a mixed note on Thursday as investors weigh Broadcom earnings and Middle East development.
The Dow Jones rose over 500 points at open to trade 1% higher at 51,183.66, S&P 500 remained muted during open, and was trading 0.17% lower at 7,539.93, and the tech-heavy Nasdaq Composite at 26,646.93 levels, down by 0.81%.
Global crude oil prices tumbled sharply on Thursday after US President Donald Trump indicated that negotiations to end the conflict with Iran were entering their final stages, raising hopes of a diplomatic breakthrough and easing concerns over potential supply disruptions in the energy market.
As of 5:58 p.m., Brent crude futures were trading down 3.51% at $94.38 per barrel after falling as low as $94.33 during the session. US West Texas Intermediate (WTI) crude declined even more sharply, dropping 4% to $92.18 per barrel.
ALSO READ: Brent Slumps Over 3%, US Crude Oil Retreats To $92 As Trump Hints At Nearing Deal To End Iran War
Shares of Broadcom fell 13% after the chipmaker reported fiscal second-quarter revenue that came in below market expectations. Cybersecurity firm CrowdStrike Holdings also declined 10% after issuing weaker-than-expected revenue guidance for the second quarter.
The losses followed a negative session on Wall Street, where investor sentiment remained under pressure amid escalating tensions in the Middle East. Hostilities between the United States and Iran intensified, with Iran launching a strike on Kuwait International Airport early Wednesday.
Meanwhile, fresh labour market data pointed to some softening in the US economy. According to the Labor Department, initial jobless claims rose to their highest level since early February. First-time applications for unemployment benefits increased to 225,000 in the week ended May 30, up 13,000 from the previous week and above economists' expectations of 215,000. The latest reading marks the highest weekly claims level since February 7.
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