New York, April 23, 2026, 17:58 EDT
Stocks in the U.S. slipped Thursday, giving back some of their recent gains after Brent crude finished at $105.07. Fresh tension in the U.S.-Iran ceasefire hovered over the market, even as the artificial intelligence trade stayed strong. The Dow Jones Industrial Average shed 180.70 points to end at 49,309.33. The S&P 500 dipped 0.41% to 7,108.30, while the Nasdaq Composite slid 0.89% to 24,438.50.
The shift caught attention—Wall Street seemed set to shrug off the Iran jolt as a blip. On Wednesday, the S&P 500 and Nasdaq both finished at record highs, then notched new intraday peaks Thursday before pulling back. The run isn’t over, but the rally’s turning pickier.
Earnings and the AI surge are still carrying the market. Reuters noted an 11% climb in the S&P 500 from its March low; the Nasdaq’s up roughly 18% since late March. Cash is flowing back into stocks as FOMO picks up pace. “The bigger risk may be ‘staying on the sidelines too long,’” said Michael Arone, chief investment strategist at State Street Investment Management. Reuters
This rally’s been lopsided. According to MarketIndex, tech and communication services stocks drove Wednesday’s climb. The equal-weight S&P 500 actually dipped 0.04%—so it wasn’t the whole market moving, just the heavyweights. Copper prices surged too, fueling bets that investors are factoring in more demand tied to AI infrastructure, electrical grids, and defense outlays.
CNN Newsource, as picked up by NBC Palm Springs, noted that the S&P 500 has jumped over 12% from its recent low, while the Nasdaq is up more than 18%—corporate earnings have been fueling the surge. By Wednesday morning, nearly 20% of S&P 500 firms had reported, and 86% of them topped estimates for earnings per share, a standard profit metric.
Yet not everyone is brushing off the war. Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management, pushed back on the idea that nothing has fundamentally shifted, telling The Australian, “We are not in that camp.” Over at BlackRock, Wei Li described AI as a “supercharged megaforce.” JPMorgan’s Dubravko Lakos-Bujas flagged a “meaningful risk” of a short-term pullback after the sharp rebound. The Australian
Company headlines were a mixed bag. ServiceNow tumbled 17.7%—software growth jitters and mounting AI rivals overshadowed results. IBM gave up 8.3%; higher profits and revenue weren’t enough to reassure. Tesla slipped 3.6% after flagging a ramp-up in capital outlays for plants and equipment. CEO Elon Musk told investors to brace for a “very significant increase” on that front. AP News
Pressure wasn’t limited to U.S. markets. Japan’s Nikkei crossed above 60,000 for the first time, only to retreat by the close. Reuters reported much of the move came from just a handful of AI-focused names. Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management, told Reuters the benchmark would need “more positive cues” if it’s going to push higher. Reuters
Emerging-market assets took a hit. According to Reuters, both stocks and currencies in those markets dropped as crude held above $100 a barrel. Energy importers came under pressure again, and concerns over the Strait of Hormuz—plus stalled U.S.-Iran negotiations—kept Asian markets on edge.
The risks on the downside are straightforward. Oil staying elevated or continued trouble in the Strait of Hormuz means inflation could stick around, margins might get squeezed, and central banks may be boxed in on rate cuts. Christian Mueller-Glissmann’s team at Goldman Sachs flagged in a note that valuation, macro, and policy indicators now tilt toward a greater chance of a pullback—even after the AI and earnings surge.
