US stocks fall from record levels as chips retreat

US stocks fell at close in a volatile session on Thursday, after touching record levels, as Iranian comments dampened hopes for an end to the war, while chipmakers came under pressure following Arm’s earnings.

The Dow Jones Industrial Average fell 0.63%, or 313 points, to 49,596, after touching 50,130.20 during the session.

The S&P 500 declined 0.38%, or 28 points, to 7,337, while the Nasdaq Composite slipped 0.13%, or 32 points, to 25,806, after both indices posted record closes in the previous session.

The PHLX Semiconductor Index dropped 2.72% to 11,160, with shares of AMD and Intel each down about 3%, after Arm warned it has yet to secure sufficient supply to meet demand for its products, sending its stock down more than 10%.

In Europe, the STOXX Europe 600 shed 1.10% to 616 at the close, after gaining more than 2% in the previous session.

The UK’s FTSE 100 declined 1.55% to 10,276. Germany’s DAX fell 1% to 24,663, and France’s CAC 40 dropped 1.17% to 8,202.

In Asia, Japan’s Nikkei 225 surged 5.58% to 62,833 after markets reopened from an extended holiday, closing above the 62,000 mark for the first time on record. The broader Topix index rose 3% to 3,840.

In oil markets, Brent crude futures for July delivery fell 1.19%, or $1.21, to settle at $100.06 a barrel, after dropping as low as $96.03 earlier in the session.

US WTI crude futures for June delivery slipped 0.28%, or 27 cents, to $94.81 a barrel.

Gold futures for June delivery rose 0.35%, or $16.60, to $4,710.90 per ounce, after touching $4,775.20 earlier in the session.

Market Drivers: A military adviser to Iran’s supreme leader said Tehran would not allow the US to reopen the Strait of Hormuz under what he described as an unrealistic plan, dampening hopes for a US-Iran deal to end the war. This comes despite reports pointing to a potential near-term, limited agreement to halt hostilities.