NASDAQ, S&P 500, Dow Jones slip as oil crosses $100 a barrel; Alphabet, Tesla decline

Wall Street witnessed benchmark indexes shrink on Thursday, as oil prices crossed $100 per barrel for the first time since May amid the escalating tensions in the Middle East.

The NASDAQ Composite declined 2.15% to end at 25,137.69 due to a 7% fall in Alphabet and a 14% downturn in Tesla after their latest earnings reports. Microsoft, Meta Platforms and Amazon were also in the red.

The S&P 500 lost 1.21% to settle at 7,408.30, while the Dow Jones Industrial Average closed 0.97% lower at 51,711.65.

Oil prices crossed the key $100 level on Friday. At 7:19 am IST, Brent Crude, the international benchmark, was trading 0.75% lower at $99.94 per barrel. West Texas Intermediate also fell 0.97% to $91.29 a barrel after Iran-backed Houthis reportedly attacked tankers in the Red Sea.

Prices also climbed after United States President Donald Trump threatened to target Iranian infrastructure.

Taking to X, Trump said, "From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran."

In a separate post he said that damages done to ships, cargo or anything related thereto will be paid by the Iranian money that the US has in its possession and controls. "These damages may be very substantial, but, nevertheless, this is the fair and equitable thing to do," he added.

US Central Command said that it has completed the 13th consecutive night of strikes against Iran, targeting drone storage facilities, military command centres, communication networks, coastal surveillance sites, and maritime capabilities. It said that more than 50,000 US service members are operating across the Middle East.