[New York Stock Exchange] All Major Indexes Close Lower Amid Uncertainty Over Peace Talks

International Oil Prices End Lower
New Unemployment Claims Come in Below Expectations

Amid growing skepticism over the conclusion of peace talks between the United States and Iran, all three major U.S. stock indices closed lower on May 7 (local time).

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average ended the day at 49,596.97, down 313.62 points (0.63%) from the previous session. The S&P 500 index, which focuses on large-cap stocks, fell by 28.01 points (0.38%) to close at 7,337.11, while the tech-heavy Nasdaq index declined by 32.747 points (0.13%) to end the session at 25,806.196.

New York Stock Exchange. New York, USA – Photo by Yoonjoo Hwang

The skepticism is being attributed to a Wall Street Journal (WSJ) report stating that the U.S. administration under President Donald Trump is considering resuming “Project Freedom.”

According to the report, Saudi Arabia and Kuwait have lifted restrictions on the use of their military bases and airspace by U.S. forces, prompting the White House to revisit the project. It is reported that Saudi Arabia and Kuwait had been uncooperative after President Trump announced the launch of the project, and as a result, the project was inevitably halted, according to WSJ.

On the same day, international oil prices dropped below $100 per barrel but retraced some of their losses by the close. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for the U.S. settled at $94.81 per barrel, down 0.28% from the previous session. Brent crude for July delivery on the ICE Futures Exchange ended at $100.06 per barrel, a decrease of 1.19% from the previous session.

Iran’s semi-official Fars News Agency reported that oil prices rebounded just before the market closed, following news of multiple explosions heard near a southern port city in Iran.

Max Layton of Citigroup said oil prices will continue to be highly volatile until it becomes clear whether an agreement to end the war will be reached. He told Bloomberg TV, “In a situation where it is extremely difficult to predict whether negotiations will succeed due to Iran’s new leadership, there is basically no way to know if an agreement will be made, so the market will remain relentlessly exposed to news, reacting wildly in all directions.”

Despite the ongoing uncertainty surrounding the war in Iran, some analysts maintain an optimistic outlook for the stock market, citing robust corporate earnings and confidence in the resilience of the U.S. economy.

The U.S. Department of Labor announced on May 7 that new unemployment claims for the week of April 26 to May 2 stood at 200,000, an increase of 10,000 from the previous week. This figure was below the forecast of 206,000 and marks the lowest level in two years since April 2024.

This is interpreted as evidence that the U.S. labor market remains stable despite the ongoing war in Iran.

Mona Mahajan of Edward Jones said, “While investors are navigating persistent geopolitical uncertainty, the market continues to be supported by strong and accelerating corporate earnings and resilient economic fundamentals.”

This content was produced with the assistance of AI translation services.