A slide in U.S. equities on Thursday reflected two cross-currents in investor sentiment: a market-wide anxiety about how artificial intelligence could disrupt business models, and a jump in energy prices tied to concerns about a possible U.S.-Iran conflict. The S&P 500 moved to its first decline in four days, while the Dow and Nasdaq also finished lower as parts of the market reacted differently to earnings results and to broader macro signals.
The decline came as investors continued to “punish stocks of companies seen as under threat by AI,” the Associated Press reported, with the concern spreading beyond a single sector. AP described those worries as rolling through Wall Street, affecting areas including software and legal services as well as trucking logistics. Analysts also likened the market’s reaction to an approach that “shoot[s] first-ask questions later.”
Booking Holdings, which owns Booking.com, Priceline and OpenTable, was among the sharper decliners. AP said Booking shares dropped 6.1% even after the company reported a profit for the latest quarter that edged past analysts’ expectations, attributing the stock’s pressure to fears that AI-powered competitors could take customers. AP added that Booking’s shares have lost about a quarter of their value so far this year.
The AI-driven sentiment also weighed on parts of the financial system beyond equities. AP said the doubts were hurting private-credit firms that have lent money to companies seen as exposed to disruption. Blue Owl Capital fell 5.9% to widen its year-to-date loss to 22.5%, while Apollo Global Management dropped 5.2% and Ares Management declined 3.1%.
AP said Carvana fell 7.9% even though it reported a stronger-than-expected profit for the quarter. The wire report attributed that weakness to investors focusing on how much profit the company made per vehicle sold, which AP said came in lower than expected. Walmart also moved the market earlier, jumping as much as 2.7% before turning lower after the retailer reported results that beat expectations but issued an upcoming-year profit forecast that came in below estimates; Walmart finished down 1.4%.
Some gains in the S&P 500 tracked oil prices. AP said benchmark U.S. crude rose 1.9% to $66.43 a barrel and Brent added 1.9% to $71.66, with energy stocks rising alongside crude. AP reported that Occidental Petroleum gained 9.4% after the company reported a stronger-than-expected profit for the latest quarter, while Deere jumped 11.6% after its machinery business reported higher-than-expected profit. AP quoted Deere CEO John May as saying the company was seeing a continued recovery in demand from construction and smaller agricultural customers, while AP said larger customers were still feeling pressure.
The oil move also connected to the day’s geopolitical backdrop. AP reported that oil prices climbed with worries about a potential military confrontation between the United States and Iran, describing the pressure President Donald Trump has been raising on Iran over its disputed nuclear program and noting that conflict risk could constrict global oil flows. The wire report did not specify whether any confrontation is imminent, but it tied the crude advance to the possibility.
In bonds and macro data, AP said the yield on the 10-year Treasury slipped to 4.07% from 4.09% late Wednesday after a report said the number of U.S. workers applying for unemployment benefits eased last week. AP said that could signal layoffs are slowing, which in turn could keep the Federal Reserve on hold longer before resuming interest-rate cuts, with AP pointing to Fed officials’ stated desire to see inflation fall further before supporting additional cuts this year.
AP also pointed to other economic reports, saying manufacturing growth in the mid-Atlantic region is accelerating. The wire report added that potential homebuyers didn’t sign as many contracts in January to purchase homes, and that the U.S. trade deficit widened in December by more than economists expected. In overseas trading, AP said indexes fell in Europe after better performances in Asia, while South Korea’s Kospi jumped 3.1% as trading resumed following a Lunar New Year holiday; markets in Hong Kong and Shanghai remained closed.