US close: Stocks pare losses but finish lower amid geopolitical jitters

(Sharecast News) - Major indices pared earlier losses on Thursday but still closed lower as oil prices eased slightly despite a "dangerous escalation" in the war in the Middle East.

At the close, the Dow Jones Industrial Average was down 0.44% at 46,021.43, while the S&P 500 shed 0.27% to 6,606.49 and the Nasdaq Composite saw out the session 0.28% weaker at 22,090.69.

The Dow closed 203.72 points lower on Thursday, extending losses recorded in the previous session.

Oil prices surged early on Thursday, but had pulled back by the close, with international benchmark Brent Crude just 1.02% higher at $108.65 a barrel and West Texas Intermediate down 0.19% at $96.14 a barrel - even as escalating strikes on Middle East energy infrastructure deepened fears of a global supply crunch.

Energy markets were rattled after Qatar said Iranian missile strikes had damaged Ras Laffan Industrial City, the world's largest LNG export hub, calling the attack a "dangerous escalation" and a violation of sovereignty. Qatar warned it reserved the right to respond under international law. The strike follows earlier Iranian threats against facilities in Qatar, Saudi Arabia and the UAE, after Israel hit a gas processing site in Iran. Donald Trump later threatened to "massively blow up the entirety of the South Pars Gas Field" if Iran attacks more facilities in Qatar.

Qatar had already suspended LNG production on 2 March following Iranian drone attacks on Ras Laffan, while Saudi Arabia and the UAE remained on alert after Israel's latest strike. The escalating attacks were seen as likely worsening the supply shock caused by the conflict, with tanker traffic through the Strait of Hormuz, which handles roughly 20% of all global oil flows, now largely blocked. The United Kingdom, France, Germany, Italy, the Netherlands and Japan later said in a joint statement that they were ready to "contribute to appropriate efforts to ensure safe passage through the Strait".

Oil prices also eased in extended trading after Israeli prime minister Benjamin Netanyahu said that Israel was helping the US to open the Strait of Hormuz with "intel and other means". Netanyahu also stated Iran has now lost the ability to enrich uranium and make ballistic missiles, adding that the conflict may draw to an end sooner than people think.

On the macro front, Americans lined up for unemployment benefits at a decelerated pace in the week ended 14 March, according to the Labor Department, with initial jobless claims falling by 8,000 to 205,000 - below expectations of an increase of 2,000. Elsewhere, the four-week moving average, which aims to strip out week-to-week volatility, dropped by 750 to 210,750, while continuing claims rose by 10,000 to 1.857m in the prior week. The Department of Labor also revealed that the advance seasonally adjusted insured unemployment rate came to 1.2%, unchanged from the previous week's unrevised rate.

On another note, the Philadelphia Federal Reserve's manufacturing index rose to 18.1 in March, its highest reading since September 2025, up from 16.3 in February and better than expectations for a reading of 10. March's increase marked the third consecutive month that the index was in positive territory, pointing to continued expansion in regional manufacturing. The index for current new orders slipped three points to 8.6, while the current shipments index rose 22 points to 22.2 - its highest reading since January - and the inventories index ticked up by two points to 1.4.

Moving on, Sales of new singlefamily homes fell sharply in January, dropping to a seasonally adjusted annual rate of 587,000, according to the Census Bureau, down 17.6% from December's revised 712,000 pace and 11.3% lower year-on-year. The number of new houses for sale edged up 0.4% month-on-month to 476,000, though still remained 4% below January 2025. At the current sales rate, this equated to 9.7 months of supply, up from eight months in December and slightly above the ninemonth supply recorded at the same time a year earlier. Median sales prices slipped to $400,500, down 4.5% from December and 6.8% lower yearonyear, while the average sales price also declined, falling 5.9% on the month to $499,500, and 3.6% compared to January 2025.

Finally, US wholesale inventories fell 0.5% monthonmonth to $909.3bn in January, according to the Census Bureau, the sharpest decline since December 2024, following a downwardly revised 0.1% drop in December and missing expectations for a 0.2% increase. Nondurable goods inventories slid 1.5% after a 0.8% fall in December, while durable goods stocks were unchanged, following a 0.2% rise in November. On an annualised basis, wholesale inventories were 1% higher in January.

In the corporate space, professional services firm Accenture traded lower in early action despite posting a $0.08 Q2 earnings beat and revenues that topped estimates as earnings guidance fell short of Wall Street expectations, while Olive Garden parent company Darden Restaurants reported Q3 sales and adjusted diluted net earnings per share that were bang in line with expectations, up 5.9% at $3.3bn and and 5.4% at $2.95, respectively.

After the close, FedEx posted solid Q3 results that beat expectations on both the top and bottom lines and raised its FY26 guidance, pointing to revenue growth of 6% to 6.5%.

Reporting by Iain Gilbert at Sharecast.com