Dow, S&P 500, Nasdaq Turn Lower With Oil Prices, Walmart, Rate-Cut Bets in Focus

U.S. stocks turned decisively lower Thursday as fears of U.S.-Iran tensions fueled a continued rally in oil prices, while Walmart earnings and Federal Reserve rate-cut expectations remained in focus.

The tech-heavy Nasdaq Composite declined 0.4%. (Photo: Nasdaq Exchange X)

The S&P 500 and the Dow Jones Industrial Average each fell about 0.3%, following solid gains across major benchmarks in the previous session. The tech-heavy Nasdaq Composite declined 0.4%, Rian Howlett and Karen Friar reported for Yahoo Finance.

The pullback came as oil posted its biggest daily jump since October amid growing concerns about a potential U.S. military strike on Iran.

Brent crude, the global benchmark, climbed above $71 a barrel, while West Texas Intermediate hovered near $66 following an Axios report that the Trump administration is edging closer to conflict.

Against that backdrop, gold rose back above $5,000 an ounce.

Meanwhile, Treasury yields extended losses, marking their longest losing streak in a month, amid oil-driven inflation concerns.

Price pressures were already under scrutiny as investors parsed minutes from the Fed’s January policy meeting, which revealed deep divisions over the future path of interest rates.

The December PCE inflation reading, due Friday, could further shape expectations.

Earnings season continues, with Walmart posting a modest quarterly beat but warning of headwinds in its guidance for the year ahead. Shares rose in early trading.