[New York Stock Exchange] Rising Tensions with Iran... All Major Indexes Open Lower

International Oil Prices Also Rise
Nasdaq Rebounds After Volatile Start

On May 4 (local time), all three major U.S. stock indexes opened lower after reports from Iran claimed that a U.S. Navy escort ship attempting to pass through the Strait of Hormuz was hit by two Iranian missiles in the Gulf of Oman and retreated. However, the Nasdaq rebounded after initial back-and-forth trading following the opening.

According to the Home Trading System (HTS), as of 9:35 a.m. at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average was down 222.22 points (0.45%) from the previous trading day, standing at 49,277.05. The S&P 500 index, which focuses on large-cap stocks, was down 8.03 points (0.11%) at 7,222.09, while the tech-heavy Nasdaq index was up 32.07 points (0.12%) at 25,146.51.

New York Stock Exchange. New York, USA - Special Correspondent Yoonju Hwang

On this day, investor sentiment was dampened amid escalating tensions between the United States and Iran in the Strait of Hormuz. According to Iranian state television, the Iranian Navy claimed to have blocked the entry of "U.S.-Zionist" warships into the area. However, U.S. Central Command later posted on X that "no U.S. Navy vessels were attacked."

This development followed U.S. President Donald Trump's announcement the previous day of "Project Freedom," which aims to rescue ships stranded in the Strait of Hormuz. President Trump explained that the United States would assist in "freeing" vessels belonging to countries not involved in the Middle East conflict, as their cargo ships had become stranded due to the closure of the Strait of Hormuz.

International oil prices surged again. West Texas Intermediate (WTI) crude for June delivery rose 0.19% from the previous session to $102.13. Brent crude for July delivery was trading at $110.43, up 2.26% from the previous session.

Nevertheless, Bank of America strategist Nigel Tupper assessed that there are reasons to maintain a bullish outlook going forward. In a memo, Tupper explained, "Solid global earnings momentum and several ongoing investment themes are supporting returns in global equity markets."

Chris Senyek, Chief Investment Strategist at Wolfe Research, predicted that artificial intelligence would remain the dominant theme in the market, thanks to strong earnings reports from seven major big tech companies. He stated, "With solid earnings reports from large technology companies further strengthening the AI theme, investors are expected to continue chasing promising tech firms such as those in semiconductors and memory."

This content was produced with the assistance of AI translation services.