A broad selloff hit every corner of the S&P 500 on Thursday even as the index briefly notched a new all-time intraday high — a sweep of all 11 sectors that MarketWatch noted, citing Dow Jones Market Data, had occurred only twice in 2026 and on seven occasions across all of 2025. The Dow Jones Industrial Average shed 356 points, or 0.7%, while the Nasdaq $NDAQ Composite slid 0.2%.
Crude markets whipsawed during the session. WTI futures, the U.S. benchmark, settled above $95 a barrel after dipping well below $100 earlier in the day, and Brent, the international benchmark, climbed back to just over $101.
Traders have been tracking the status of negotiations between the U.S. and Iran. Wednesday's market moves were shaped by an Axios report — sourced to two U.S. officials and two additional people briefed on the situation — describing White House confidence that a one-page, 14-point memorandum of understanding was within reach, one that would both halt the fighting and lay the groundwork for formal nuclear negotiations; equities rallied and oil retreated on the news. As of Thursday, Iranian state media had reported no formal reply from Tehran to Washington's proposal, CNBC noted.
Renewed diplomatic contact between Washington and Tehran could come as soon as next week, The Wall Street Journal reported, adding that a deal would clear the way for ships to transit the Strait of Hormuz again.
Despite the broad pullback, tech stocks provided some support. A notable intra-sector split emerged as well: software names outpaced chips by the widest gap since October 2002, according to MarketWatch, which cited Dow Jones Market Data, with the iShares Expanded Tech-Software Sector ETF advancing 4% against a 2.5% decline in the iShares Semiconductor ETF. That reversal came after a period in which investors had favored chip stocks on the theory that surging AI workloads would lift hardware spending at the expense of legacy software franchises.
The broader market's climb to record levels has been driven in part by a strong earnings season. Results from more than 400 index members are now in, and roughly 85% have topped analyst forecasts, according to The Wall Street Journal. Whirlpool stood out as a casualty of the conflict, citing war-related damage to its earnings and announcing it would eliminate its dividend.
Fortinet $FTNT shares surged 22% after management increased its full-year billings outlook, and Peloton added 5% on the back of better-than-expected third-quarter revenue.