US stock indices fell on Thursday as a rebound in energy prices reignited worries that the Federal Reserve could raise interest rates next month. The S&P 500 slipped 0.2%, the Nasdaq 100 declined 0.4%, and the Dow Jones Industrial Average dropped 464 points. Treasury yields rose in tandem with wholesale fuel prices as investors reassessed the outlook for reopening shipping lanes through the Strait of Hormuz. Reports indicated that Iran intends to block US and Israeli vessels from the key waterway and demand compensation from governments it deems hostile as a condition for transit.
Hawkish remarks from FOMC officials were underscored by reports that Fed Chair Warsh is prepared to tighten policy further if inflation continues to rise. Financials weakened, with JPMorgan down 0.8% and Morgan Stanley off 2.1%. Most credit‑sensitive hyperscalers also traded lower, including Alphabet, which fell 1.3%.
In corporate news, Western Digital tumbled 13% after issuing disappointing guidance, while Sandisk slid 6.8% as its results missed forecasts. SpaceX gained 6.1% after $101 billion in shares came out of their post‑IPO lockup period.
