US equities mixed as Hormuz tensions and inflation data cloud outlook

US stock markets opened on a cautious note on Thursday, with the Dow Jones Industrial Average declining 0.6% while the S&P 500 and Nasdaq Composite remained largely flat. The mixed opening followed a second wave of US military strikes on Iran near the Strait of Hormuz, which escalated oil prices and heightened concerns regarding the stability of a ceasefire. Investors are currently awaiting official updates on US-Iran negotiations, with tensions persisting over the reopening of the critical waterway.

Geopolitical friction drove crude prices higher, with Brent crude rising above $96 a barrel and West Texas Intermediate trading near $90. The escalation comes as President Donald Trump stated he was not satisfied with ongoing talks, while the White House denied an Iranian report suggesting a draft agreement had been reached. Sticking points in the negotiations include the nation’s nuclear program and Iran’s desire to retain control over the Strait, which remains subject to a double blockade imposed by both Tehran and Washington.

On the economic front, data released on Thursday presented a complex picture for the Federal Reserve. The Personal Consumption Expenditures (PCE) index, the central bank’s preferred inflation gauge, rose by 0.4% in April, slightly below expectations and March’s 0.7% increase. Core PCE, which excludes volatile food and energy components, advanced 0.2% month-on-month, also missing forecasts. Concurrently, initial jobless claims for the week ended May 23 rose to 215,000, exceeding the consensus estimate of 211,000, while personal income remained flat.

Despite broader market hesitation, the technology sector provided significant support, driven by strong earnings and artificial intelligence spending. Snowflake shares surged more than 30% after reporting robust results and announcing a $6 billion deal with Amazon Web Services. Marvell and HP also delivered strong results, while Best Buy shares jumped 8% on better-than-expected sales that highlighted consumer resilience.

However, not all tech giants fared equally. Salesforce reported earnings that beat expectations but issued a tepid forecast, causing shares to fall modestly in premarket trading. The company’s stock has declined 35% year-to-date amid investor concerns that artificial intelligence models could disrupt its business model. In response, Salesforce announced a $27 billion stock buyback in the most recent quarter, a move intended to signal confidence to investors despite the challenging macroeconomic and geopolitical environment.