New York stocks closed lower across the board on news that Iran is pushing to ban ships from the United States and Israel from transiting the Strait of Hormuz.
On the 6th (U.S. Eastern time), on Wall Street, the Dow Jones Industrial Average ended at 53,885.10, down 464.02 points, or 0.85%, from the previous session. The Standard & Poor's (S&P) 500 fell 13.61 points, or 0.18%, to 7,709.95, and the tech-heavy Nasdaq composite closed at 26,348.35, down 15.09 points, or 0.06%.
Investor sentiment weakened on news that Iran, which is negotiating to reopen the Strait of Hormuz with Oman, is pushing a selective ban on transit for U.S. and Israeli ships. Iran's state-run Fars News Agency reported that the Majlis National Security Committee is reviewing a bill to completely ban the passage of vessels belonging to hostile countries, including the United States and Israel, through the Strait of Hormuz.
Artificial intelligence (AI)-related stocks were mixed after earnings. Memory chipmaker SanDisk beat market expectations for revenue and net income, but fell 6.81% as its outlook failed to meet investor expectations. Western Digital also reported results that topped forecasts but plunged 13.03%.
JJ Kinahan, head of retail expansion and alternative investment products at the Chicago Board Options Exchange (Cboe), said, "The market, which saw heightened volatility around earnings, is taking a brief breather," adding, "Even if companies report better-than-expected earnings and revenue, it's hard for shares to rise if the outlook disappoints."