US–Iran tensions drive oil higher and market rotation
U.S. stocks pulled back on Thursday as oil prices moved higher again, though strength in energy stocks provided some support to the broader market. The Dow Jones Industrial Average fell about 470 points, while the S&P 500 declined 1.7% and the Nasdaq Composite dropped 2.4%.
The move came as investors continued to react to developments in the Middle East, where uncertainty around U.S.–Iran negotiations remains elevated. Reports suggest that while diplomatic efforts are ongoing, both sides are still far apart on key terms.
Oil prices resumed their climb, with West Texas Intermediate (WTI) rising 4.6% to $94.50 per barrel, while Brent crude moved back above the $100 level. The rebound reflects ongoing concerns about supply disruptions tied to the Strait of Hormuz.
Higher energy prices also pushed Treasury yields and the U.S. dollar higher, signaling a shift in market positioning. At the same time, assets like gold and bitcoin pulled back, suggesting a rotation rather than a broad risk-off move.
Energy stocks stood out as one of the strongest sectors. Companies such as Chevron (CVX), Valero (VLO), and ConocoPhillips (COP) posted gains as investors rotated into oil-linked names.
Meanwhile, technology stocks saw some pressure after recent gains, with Nvidia (NVDA) and Meta (META) pulling back, while Apple (AAPL) was among the few large-cap names that still moved higher.
📊 Market Wrap
🧠 Analyst Notes
💬 Market Highlights
Netflix Raises Prices to Fund Content Expansion
Netflix (NFLX) is raising subscription prices across all plans as it looks to support a growing content budget expected to reach $20 billion this year. The company continues to rely on a combination of subscriber growth, pricing power, and advertising expansion, with ad revenue projected to roughly double. Recent content investments include live events, new licensing deals, and expanded original programming.
The move signals confidence in demand despite a competitive streaming landscape. Investors are watching whether price increases can be absorbed without slowing subscriber growth. The strategy highlights Netflix’s focus on scaling both content and monetization simultaneously.
Cloudflare Positioned to Benefit from AI Traffic Boom
Oppenheimer reiterated a bullish view on Cloudflare (NET), pointing to strong tailwinds from the growth of AI-driven internet traffic. The firm expects global data traffic to grow at more than 20% annually through the end of the decade. AI agents and automation tools are expected to drive higher demand for both compute and security services. Cloudflare’s network architecture positions it well to capture this shift, with potential revenue upside from higher-value traffic.
The firm also highlighted a multiplier effect, where AI traffic generates more monetization than traditional usage. Despite short-term volatility, long-term growth remains closely tied to AI adoption trends.
Unity Jumps on Strong Preliminary Earnings Outlook
Unity Software (U) surged in extended trading after signaling that its first-quarter results will exceed previous guidance. The company expects both revenue and adjusted EBITDA to come in above earlier forecasts, driven by strong performance from its Unity Vector platform. Growth in both Create and Grow segments contributed to the upside.
Management also announced strategic changes, including exiting parts of its ads network and exploring divestment of its game publishing business. These moves aim to streamline operations and improve profitability. The update suggests improving execution and stronger visibility into future growth.
📅 Earnings Watch
Energy prices, US–Iran developments, and sector rotation between energy and technology are likely to remain key factors shaping market sentiment in the coming sessions.
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