NEW YORK—U.S. equities declined Thursday, with the Dow Jones Industrial Average falling 0.6 percent, the S&P 500 dropping 0.2 percent and the Nasdaq Composite slipping 0.1 percent. The selloff ended the Dow's recent winning streak.
Investors weighed rising Treasury yields, higher oil prices, corporate earnings and fresh labor market data.
The 10-year Treasury yield climbed to 4.67 percent and the 30-year rose to 5.21 percent. Higher yields make government bonds more competitive with stocks, reducing the relative appeal of equities.
Global oil prices reached roughly $81 a barrel, with Middle East tensions continuing to drive energy markets higher.
Attention centered on the Strait of Hormuz, a critical oil shipping route. Iran announced a temporary shipping agreement with Oman, with Iranian Foreign Ministry spokesman Esmail Baghaei saying the deal would proceed if external parties did not obstruct it. An Iranian government official said ships would not face fees under the temporary terms.
The agreement did not ease market concerns. Investors wanted specifics on implementation, and Deutsche Bank strategist Jim Reid said the market was focused less on whether the deal happened and more on its final terms—particularly whether Iran could eventually impose tolls on vessels transiting the strait.
Technology stocks remained under pressure as investors questioned whether heavy capital spending on artificial intelligence would generate sufficient revenue and profit. High valuations added to the caution, with several AI-focused companies posting sharp declines after missing earnings or issuing weak guidance.
