NEW YORK, April 23, 2026 — U.S. equity markets closed lower Thursday as the S&P 500 fell 0.41% to 7,108.40, the Nasdaq Composite dropped 0.89% to 24,438.50, the Dow Jones Industrial Average declined 0.36% to 49,310.32, and the Russell 2000 shed approximately 0.37%, as a combination of geopolitical uncertainty surrounding the Iran conflict, rising oil prices, and a sharp selloff in enterprise software stocks reversed earlier intraday record highs across all four benchmarks.
Session narrative: Record highs surrendered as Iran uncertainty and software rout dominate
Thursday’s session opened with optimism intact following Wednesday’s broad-based rally, with both the S&P 500 and Nasdaq briefly touching fresh all-time intraday highs in early trading before geopolitical headwinds reasserted control over the tape. As President Trump reiterated there was no deadline for ending the Iran conflict and Iran’s president cited a U.S. blockade on Iranian ports as a major obstacle to peace talks, risk appetite deteriorated steadily through the afternoon session.
The session’s most consequential single-stock driver during regular hours was ServiceNow (NOW), whose shares tumbled more than 13% after the enterprise software giant reported that the integration of recently acquired cybersecurity firm Armis weighed heavily on its forward outlook. Despite posting first-quarter earnings and revenue that topped Wall Street expectations, the guidance miss — compounded by management’s acknowledgement that its subscription revenue growth had been hindered by the ongoing Middle East conflict — was sufficient to trigger broad-based selling across the software complex, pulling Information Technology lower even as semiconductor names provided partial offset.
Energy was the session’s standout exception, advancing 1.31% as Brent crude extended its rise on heightened Strait of Hormuz risk premium — a dynamic tracked in detail throughout the session in PreMarket Daily’s midday pulse coverage. Every other sector closed in the red, with Real Estate (-1.94%), Utilities (-1.75%), and Industrials (-1.39%) sustaining the heaviest losses.
On the macro front, initial jobless claims for the week ending April 18 came in at 214,000, up 6,000 from the prior period and slightly above the Dow Jones consensus estimate of 210,000, though the reading remained broadly consistent with a tight labour market. Continuing claims edged up to 1.82 million. The data, previewed in PreMarket Daily’s pre-open jobless claims analysis, provided limited directional impulse given the geopolitical dominance of the session narrative.
Sector scorecard: Energy the lone winner; Real Estate and Utilities bear the brunt
Energy (+1.31%) was the session’s only advancing sector, benefiting directly from elevated crude prices as Iran-related supply risk kept the bid firm under oil majors. The sector’s outperformance stood in stark contrast to the broader market’s retreat and reinforced the ongoing bifurcation between geopolitical beneficiaries and rate-sensitive, growth-oriented segments of the index.
Information Technology (-0.23%) was relatively insulated at the index level, with semiconductor stocks — led by Texas Instruments (TXN), which surged 18% during the regular session following its after-hours earnings report from the prior evening — providing meaningful support. According to CNBC, if TI’s gain holds it would represent the chipmaker’s best single-day performance since October 19, 2000. That cushion was, however, largely offset by the ServiceNow-led collapse in enterprise software.
Consumer Staples (-0.47%) and Consumer Discretionary (-0.49%) both posted modest declines, the latter pressured in part by American Airlines (AAL), which revised its full-year adjusted earnings guidance sharply lower — now projecting a range of a loss of 40 cents per share to earnings of $1.10 per share, against its January forecast of $1.70 to $2.70 per share — as the Iran conflict’s disruption to transatlantic and Middle East routing continued to suppress revenue visibility.
Financials (-0.63%), Health Care (-1.01%), Materials (-1.23%), and Communication Services (-1.24%) all registered moderate-to-significant losses. Industrials (-1.39%) were weighed down by Honeywell’s mixed quarterly report. Real Estate (-1.94%) and Utilities (-1.75%) bore the brunt of the session’s risk-off rotation, with rising energy prices amplifying cost-of-capital concerns for yield-sensitive sectors.
After-hours earnings and movers: Chipmakers surge as IBM and Honeywell disappoint
The after-hours session delivered a pronounced divergence between semiconductor hardware and the broader industrial and software complex, reinforcing a thematic trend that has characterised the early weeks of the Q1 2026 reporting season.
Intel (INTC): Blowout quarter, shares +20% after hours
Intel (INTC) reported first-quarter results that dramatically exceeded Wall Street forecasts across every key metric. Adjusted earnings per share came in at 29 cents versus a consensus estimate of just 1 cent, while revenue of $13.58 billion surpassed the $12.42 billion expected by analysts. The company’s data centre business — widely regarded as the strategic battleground for Intel’s multi-year turnaround — posted revenue of $5.1 billion, up 22% year over year, signalling meaningful share recovery in cloud and AI infrastructure workloads. For the second quarter, Intel guided for revenue between $13.8 billion and $14.8 billion and adjusted EPS of 20 cents, well above the analyst consensus for revenue of $13.07 billion and EPS of 9 cents. Shares jumped 20% in after-hours trading.
Texas Instruments (TXN): Data centre up 90%, guidance above consensus
Texas Instruments (TXN) extended its regular-session gains into the after-hours period, with shares climbing an additional 18.7% after reporting Q1 2026 revenue of $4.83 billion, up 19% year over year and 9% sequentially, with EPS of $1.68 beating the $1.36 consensus. The standout figure was a 90% year-over-year surge in its data centre chip business, reflecting the ongoing acceleration of AI infrastructure buildout. For Q2, TI guided for EPS in the range of $1.77 to $2.05 against a $1.58 consensus, and revenue between $5.0 billion and $5.4 billion versus the $4.87 billion expected. Barclays responded by upgrading TXN to “equal weight” from “underweight” and raising its price target to $250 from $175.
ServiceNow (NOW): Guidance miss triggers 13% selloff
ServiceNow (NOW) delivered first-quarter earnings and revenue that topped Wall Street expectations but saw shares plunge more than 13% as management’s forward guidance disappointed investors. The integration of recently acquired cybersecurity firm Armis weighed on the company’s near-term profitability outlook, and executives flagged that subscription revenue growth had been partially constrained by disruption stemming from the Middle East conflict — a macro headwind that reinforced broader concerns about enterprise software spending in conflict-affected geographies. The stock’s decline was the single largest drag on the Nasdaq during regular trading hours, as covered in PreMarket Daily’s opening bell analysis.
IBM: Shares -8% on guidance disappointment
IBM shares tumbled more than 8% after the company posted quarterly results but maintained — rather than raised — its full-year guidance, a stance that disappointed investors who had anticipated upward revisions given the broader strength in technology infrastructure spending. The market’s reaction underscored elevated expectations embedded in legacy technology valuations amid the AI infrastructure supercycle narrative.
Honeywell (HON): Mixed results, weak Q2 outlook
Honeywell (HON) reported adjusted Q1 earnings of $2.45 per share, ahead of the LSEG consensus estimate of $2.32, but revenue of $9.1 billion fell short of expectations. More consequentially, second-quarter EPS guidance of $2.35 to $2.45 came in below the FactSet forecast of $2.56, sending shares down 5.6% in after-hours trading and adding to the pressure on the Industrials sector.
What today sets up for tomorrow: Key levels, overnight risks, and Friday’s calendar
With the S&P 500 closing at 7,108.40 — below the intraday all-time highs touched earlier in Thursday’s session — market participants will monitor whether the index can reclaim the 7,137 level that marked Wednesday’s record close, as detailed in PreMarket Daily’s April 22 close recap. A sustained failure to recapture that level would represent a technically meaningful reversal of the recent breakout.
The after-hours surge in Intel and Texas Instruments — two Nasdaq-listed heavyweights — positions the technology index for a potentially supportive open on Friday, provided overnight geopolitical developments do not deteriorate. However, the IBM and Honeywell declines introduce countervailing pressure across both the Dow and the broader industrial complex.
| Level / Event | Value | Signal |
|---|---|---|
| S&P 500 prior record close | 7,137.90 | Reclaiming this level would signal renewed bullish momentum; failure to recover keeps bears in control near-term |
| S&P 500 Thursday close | 7,108.40 | Current support; a break below 7,080 would open a deeper retest of the April consolidation range |
| Intel Q2 revenue guidance midpoint | $14.3B | Significantly above $13.07B consensus; sets a high bar for data centre demand expectations across the chip sector |
| TXN Barclays price target | $250 | Raised from $175 with upgrade to equal weight; signals analyst community repricing analogue chip AI exposure |
| Iran conflict: U.S.-Iran talks | No deadline | Trump’s confirmation of no peace deadline sustains geopolitical risk premium in energy; any ceasefire signal would be a sharp risk-on catalyst |
Friday’s economic calendar and any overnight developments in U.S.-Iran diplomatic communications will be key inputs for pre-market positioning. Earnings season continues to accelerate, with the current 81% S&P 500 beat rate providing a broadly constructive fundamental backdrop even as geopolitical volatility keeps sentiment fragile. The divergence between semiconductor hardware strength and enterprise software weakness — the dominant thematic of Thursday’s after-hours session — is likely to remain a focal point for sector rotation strategies heading into next week.
This article is published by PreMarket Daily for informational purposes only. Nothing here constitutes financial advice, investment recommendations, or an offer to buy or sell any securities. Always consult a qualified financial professional before making investment decisions.
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