Dow Jones slips 175 pts as fragile US-Iran ceasefire cracks, oil rebounds

• Iran accused the US of violating the ceasefire citing Israel's Lebanon strikes and drone incursions, while Trump warned of 'major escalation' if Iran breaches the agreement
• Crude oil jumped 4-5% as traffic through the Strait of Hormuz remains limited despite the ceasefire framework meant to reopen the critical shipping route
• Economic data showed mixed signals: PCE inflation at 2.8% year-over-year matched forecasts, jobless claims rose to 219,000 (above 210,000 estimate), and Q4 GDP growth came in at 0.5% versus 0.7% expected

Market Summary: US Equities Decline on Geopolitical Tensions and Energy Concerns

US stocks retreated Thursday as ceasefire uncertainties between the US and Iran pressured markets. The Dow Jones fell 175 points (-0.37%), while the S&P 500 and Nasdaq 100 declined 0.15% and 0.12%, respectively. This followed Wednesday's strong rally where the Dow surged 1,300 points (+2.9%).

Geopolitical Developments:

President Trump agreed to a two-week pause in attacks on Iran to facilitate negotiations and reopen the Strait of Hormuz, a critical shipping route disrupted during five weeks of conflict. However, the ceasefire showed immediate strain as Iran's parliamentary speaker Mohammad Bagher Ghalibaf accused the US of violations, citing continued Israeli strikes on Lebanon and drone incursions. Trump warned that military forces would remain deployed until full Iranian compliance, threatening major escalation if breached. Vessel traffic through Hormuz remains severely limited.

Energy Markets:

Oil prices rebounded sharply on supply concerns. West Texas Intermediate jumped approximately 5% to above $99/barrel, while Brent crude rose 4% to above $98, reflecting ongoing uncertainty about energy shipment normalization.

Economic Data:

February's Personal Consumption Expenditures (PCE) index—the Fed's preferred inflation gauge—rose 0.4% month-over-month and 2.8% year-over-year, meeting expectations. Core PCE also matched forecasts. Weekly jobless claims reached 219,000 (vs. 210,000 expected), while Q4 GDP growth registered 0.5%, below the 0.7% consensus.

Individual Stock Activity:

Applied Digital CoreWeave gained 2.6% on a $21 billion cloud deal with Meta Platforms, though gains were tempered by a $3 billion convertible bond offering announcement.

Outlook:

Markets face continued volatility amid persistent geopolitical risks and inflation concerns.