Wall Street Slips From Record Highs as Tech Wobbles and Oil Surges on Iran Tensions

CNBC, the Wall Street Journal, Fortune, Reuters, AP, and Market Watch contributed to this report.

Stocks took a step back Thursday after flirting with fresh records, as a mix of sliding software shares and rising oil prices cooled the rally.

The S&P 500 dipped 0.41% to close at 7,108.40, backing off an earlier all-time high. The Nasdaq Composite dropped 0.89% to 24,438.50 after also hitting a record earlier in the session. The Dow Jones Industrial Average lost 179 points, ending at 49,310.32.

Tech did most of the damage.

ServiceNow plunged nearly 18%, rattled by weaker subscription growth tied in part to the Middle East conflict. IBM fell more than 8% – even after beating earnings expectations – because it didn’t raise its full-year outlook. That didn’t sit well with investors who’ve grown used to upbeat guidance.

The weakness spread fast. Microsoft slid around 4%. Palantir Technologies dropped over 7%, and Oracle lost roughly 6%. The broader software space, tracked by the iShares Expanded Tech-Software ETF, sank about 6%.

After a strong rebound from March lows, the market looks a little tired. Traders are waiting for the next big catalyst – and not finding one yet.

Geopolitics isn’t helping.

The ongoing standoff tied to the Iran war is keeping nerves on edge, even with a fragile ceasefire in place. Tensions have shifted toward the Strait of Hormuz, where US and Iranian forces are jostling for control and commercial ships have been seized. The situation escalated further after Donald Trump ordered the Navy to respond aggressively to any mine-laying threats.

Oil reacted immediately. Brent crude jumped above $105 a barrel, at one point pushing past $107. That spike hit stocks almost in real time, dragging the S&P 500 down as much as 1.3% before it clawed back part of the loss.

Fresh reports out of Tehran added to the unease, including signs of internal political shifts and heightened military activity in the capital. None of it suggests the situation is settling anytime soon.

Investors are trying to tune out the headlines, but they’re not quite there yet. The market may be less reactive than it was weeks ago, still every new twist in the conflict ripples through energy and equities alike.

For now, the rally is pausing – not collapsing, just catching its breath. But with oil climbing and tech under pressure, the path higher suddenly looks less straightforward.