Date: 28th May 2026.
Stock Market Today: Dow, S&P 500, and Nasdaq Fall as Hormuz Strikes Push Oil Prices Higher.
US stock futures moved lower on Thursday as investors weighed renewed geopolitical tensions in the Middle East against another wave of strong AI-driven corporate earnings.
Futures linked to the Dow Jones Industrial Average fell around 0.2%, while S&P 500 futures declined 0.4%. Nasdaq 100 futures underperformed, with losses near 0.8%, as traders reacted cautiously to reports of fresh US military strikes near the Strait of Hormuz.
The renewed conflict in the Persian Gulf pushed oil prices sharply higher and reignited concerns about inflation, global energy supply disruptions, and the potential impact on Federal Reserve policy.
Investor sentiment turned cautious after reports confirmed that US forces conducted new strikes targeting military sites and drone threats near the Strait of Hormuz — one of the world’s most critical oil shipping routes.
The situation escalated further after Iran reportedly responded with retaliatory actions targeting US-linked military infrastructure in the region. At the same time, Washington introduced fresh sanctions aimed at limiting Tehran’s ability to profit from traffic through the Strait of Hormuz.
Although negotiations between the US and Iran are still ongoing, markets are increasingly concerned that diplomatic talks may fail, prolonging supply disruptions and geopolitical uncertainty.
As a result:
The Strait of Hormuz remains one of the most strategically important shipping routes globally, handling a significant portion of the world’s oil exports. Any disruption to flows through the waterway immediately impacts energy markets and inflation expectations worldwide.
Analysts warned that if negotiations collapse entirely, oil prices could move substantially higher during the summer months, particularly if global inventories continue tightening.
The latest rise in crude prices also revived fears that higher energy costs may keep inflation elevated longer than expected.
Investors are now turning their attention toward the release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge.
The data could significantly influence expectations regarding future interest rate decisions.
Higher-than-expected inflation readings would likely strengthen expectations that the Federal Reserve may keep rates elevated for longer or potentially consider additional tightening measures later in 2026.
Rising oil prices further complicate the inflation outlook, as energy costs often feed into broader consumer prices.
The 10-year Treasury yield rose toward 4.50%, reflecting investor concerns that persistent geopolitical instability and elevated energy prices could delay potential monetary easing from the Federal Reserve.
Historically, rising bond yields tend to pressure growth-oriented sectors such as technology because higher interest rates reduce the present value of future earnings.
Asian markets traded mostly lower following the renewed escalation in the Middle East.
Japan’s Nikkei 225, South Korea’s KOSPI, Chinese equities, and Australian stocks all posted declines as investors reduced exposure to risk assets.
Meanwhile, gold prices eased slightly despite geopolitical uncertainty, as stronger Treasury yields limited demand for non-yielding assets.
Financial markets are currently balancing two major themes:
However, escalating tensions around the Strait of Hormuz present a significant macroeconomic risk that could fuel inflation, pressure central banks, and increase market volatility in the coming weeks.
Investors will now closely monitor:
Despite geopolitical concerns, the artificial intelligence boom continues to support investor optimism across the technology sector.
Several major companies delivered strong quarterly earnings results, highlighting robust demand tied to AI infrastructure, cloud computing, and enterprise technology spending.
One of the biggest market movers was Snowflake, whose shares surged more than 30% in after-hours trading.
The company exceeded Wall Street expectations and announced a massive $6 billion multi-year infrastructure agreement with Amazon Web Services (AWS). The deal reinforced confidence that AI-related spending remains strong despite broader economic uncertainty.
The results also demonstrated that businesses continue increasing investments in cloud computing and AI-powered data infrastructure.
Marvell Technology and HP also posted earnings that pointed toward continued strength in AI-related spending.
Demand for chips, servers, and AI-capable computing systems remains elevated as corporations accelerate AI adoption across industries.
However, not all technology earnings impressed investors equally.
Salesforce reported earnings that beat analysts’ estimates, but investors reacted cautiously to the company’s softer guidance.
Markets are increasingly concerned that rapid advancements in generative AI could disrupt traditional software business models and intensify competition across the enterprise technology sector.
Today’s market action highlights the increasingly fragile balance between bullish AI-driven momentum and global geopolitical instability.
While strong earnings from major technology companies continue supporting equity valuations, renewed tensions near the Strait of Hormuz have reminded investors how quickly geopolitical events can shift market sentiment.
The combination of rising oil prices, inflation uncertainty, and central bank expectations is likely to remain the dominant market theme heading into the summer months.
For traders and investors alike, risk management and close monitoring of macroeconomic developments will remain critical in navigating today’s highly volatile financial landscape.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Click HERE to access the full HFM Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!
Click HERE to READ more Market news.
Andria Pichidi
HFMarkets
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Stock Market Today: Dow, S&P 500, and Nasdaq Fall as Hormuz Strikes Push Oil Prices Higher.
US stock futures moved lower on Thursday as investors weighed renewed geopolitical tensions in the Middle East against another wave of strong AI-driven corporate earnings.
Futures linked to the Dow Jones Industrial Average fell around 0.2%, while S&P 500 futures declined 0.4%. Nasdaq 100 futures underperformed, with losses near 0.8%, as traders reacted cautiously to reports of fresh US military strikes near the Strait of Hormuz.
The renewed conflict in the Persian Gulf pushed oil prices sharply higher and reignited concerns about inflation, global energy supply disruptions, and the potential impact on Federal Reserve policy.
Investor sentiment turned cautious after reports confirmed that US forces conducted new strikes targeting military sites and drone threats near the Strait of Hormuz — one of the world’s most critical oil shipping routes.
The situation escalated further after Iran reportedly responded with retaliatory actions targeting US-linked military infrastructure in the region. At the same time, Washington introduced fresh sanctions aimed at limiting Tehran’s ability to profit from traffic through the Strait of Hormuz.
Although negotiations between the US and Iran are still ongoing, markets are increasingly concerned that diplomatic talks may fail, prolonging supply disruptions and geopolitical uncertainty.
As a result:
- Oil prices surged
- Treasury yields climbed
- Technology stocks lost momentum in pre-market trading
- Investors shifted toward defensive positioning
The Strait of Hormuz remains one of the most strategically important shipping routes globally, handling a significant portion of the world’s oil exports. Any disruption to flows through the waterway immediately impacts energy markets and inflation expectations worldwide.
Analysts warned that if negotiations collapse entirely, oil prices could move substantially higher during the summer months, particularly if global inventories continue tightening.
The latest rise in crude prices also revived fears that higher energy costs may keep inflation elevated longer than expected.
Investors are now turning their attention toward the release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge.
The data could significantly influence expectations regarding future interest rate decisions.
Higher-than-expected inflation readings would likely strengthen expectations that the Federal Reserve may keep rates elevated for longer or potentially consider additional tightening measures later in 2026.
Rising oil prices further complicate the inflation outlook, as energy costs often feed into broader consumer prices.
The 10-year Treasury yield rose toward 4.50%, reflecting investor concerns that persistent geopolitical instability and elevated energy prices could delay potential monetary easing from the Federal Reserve.
Historically, rising bond yields tend to pressure growth-oriented sectors such as technology because higher interest rates reduce the present value of future earnings.
Asian markets traded mostly lower following the renewed escalation in the Middle East.
Japan’s Nikkei 225, South Korea’s KOSPI, Chinese equities, and Australian stocks all posted declines as investors reduced exposure to risk assets.
Meanwhile, gold prices eased slightly despite geopolitical uncertainty, as stronger Treasury yields limited demand for non-yielding assets.
Financial markets are currently balancing two major themes:
- Strong optimism surrounding artificial intelligence and technology growth
- Rising geopolitical risks tied to the Middle East conflict and energy supply disruptions
However, escalating tensions around the Strait of Hormuz present a significant macroeconomic risk that could fuel inflation, pressure central banks, and increase market volatility in the coming weeks.
Investors will now closely monitor:
- US-Iran diplomatic negotiations
- Oil price movements
- Federal Reserve inflation data
- Treasury yield trends
- Upcoming earnings reports from major retailers and technology firms
Despite geopolitical concerns, the artificial intelligence boom continues to support investor optimism across the technology sector.
Several major companies delivered strong quarterly earnings results, highlighting robust demand tied to AI infrastructure, cloud computing, and enterprise technology spending.
One of the biggest market movers was Snowflake, whose shares surged more than 30% in after-hours trading.
The company exceeded Wall Street expectations and announced a massive $6 billion multi-year infrastructure agreement with Amazon Web Services (AWS). The deal reinforced confidence that AI-related spending remains strong despite broader economic uncertainty.
The results also demonstrated that businesses continue increasing investments in cloud computing and AI-powered data infrastructure.
Marvell Technology and HP also posted earnings that pointed toward continued strength in AI-related spending.
Demand for chips, servers, and AI-capable computing systems remains elevated as corporations accelerate AI adoption across industries.
However, not all technology earnings impressed investors equally.
Salesforce reported earnings that beat analysts’ estimates, but investors reacted cautiously to the company’s softer guidance.
Markets are increasingly concerned that rapid advancements in generative AI could disrupt traditional software business models and intensify competition across the enterprise technology sector.
Today’s market action highlights the increasingly fragile balance between bullish AI-driven momentum and global geopolitical instability.
While strong earnings from major technology companies continue supporting equity valuations, renewed tensions near the Strait of Hormuz have reminded investors how quickly geopolitical events can shift market sentiment.
The combination of rising oil prices, inflation uncertainty, and central bank expectations is likely to remain the dominant market theme heading into the summer months.
For traders and investors alike, risk management and close monitoring of macroeconomic developments will remain critical in navigating today’s highly volatile financial landscape.
Always trade with strict risk management. Your capital is the single most important aspect of your trading business.
Please note that times displayed based on local time zone and are from time of writing this report.
Click HERE to access the full HFM Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!
Click HERE to READ more Market news.
Andria Pichidi
HFMarkets
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
