As additional peace talks between the United States and Iran fell through and uncertainty grew, all three major New York stock indexes closed lower.
On Apr. 23 (Eastern time), the Dow Jones Industrial Average finished at 49,310.32, down 179.71 points (0.36%) from the previous session. The Standard & Poor's (S&P) 500 index closed at 7,108.40, down 29.50 points (0.41%), and the tech-heavy Nasdaq composite ended at 24,438.50, down 219.06 points (0.89%).
The S&P 500 and Nasdaq, which hit a record high the previous day, again set fresh record highs early in the session but showed heavy volatility as Middle East tensions resurfaced.
U.S. President Donald Trump said he ordered the immediate sinking of any vessel laying mines in the Strait of Hormuz. The U.S. military is strengthening a maritime blockade against Iran, including deploying the Nimitz-class aircraft carrier George H.W. Bush to waters near the Middle East.
Iran is responding to additional threats by saying it will not join talks as long as the U.S. maritime blockade continues. Markets reacted sensitively, in particular, after news that Tehran's air defenses were activated following the cease-fire. The market was also stirred when Israel's defense minister said preparations to resume war with Iran were complete and that they were awaiting U.S. approval.
International oil prices surged for a fourth straight day. June delivery Brent crude futures settled at $105.07 per barrel, up 3.1% from the previous session, and June delivery West Texas Intermediate (WTI) settled at $95.85 per barrel, up 3.11%. Over the past four trading days, Brent and WTI have risen 16.25% and 14.31%, respectively.
Despite the unstable situation, corporations' strong earnings are serving as a backstop. According to Bloomberg News, 80% of S&P 500 companies that released first-quarter results are recording earnings surprises. Notably, Intel jumped in after-hours trading after releasing an upbeat outlook following the close.