The S&P 500 fell 0.7%. The Dow Jones Industrial Average was down 377 points, or 0.8%, as of 1:36 p.m. Eastern, and the Nasdaq composite was 1.2% lower after setting its own record. It’s a stumble for Wall Street following a weekslong rally that erased all its losses because of the war and then carried it to records.

Tesla dragged on the market and fell 3.4% even though it reported better results for the latest quarter than analysts expected. Investors may be focusing instead on Tesla’s increased forecast for spending this year, as it builds factories to make robots and other products.

“You should expect to see a very significant increase in capital expenditures,” Elon Musk told investors late Wednesday, “but I think well justified for a substantially increased future revenue stream.”

ServiceNow dropped even more, 17.9%, even though its results for the latest quarter matched analysts’ expectations. The company has been under pressure, along with much of the broad software industry, because of worries that rivals powered by artificial-intelligence technology could undercut its business.

But Texas Instruments helped offset those losses after breezing past analysts’ expectations for profit in the latest quarter. CEO Haviv Ilan said the semiconductor company is benefiting from growth led by industrial and data center customers, and it gave forecasts for profit and revenue in the spring that cleared analysts’ estimates.

The 19% leap for Texas Instrument’s stock was the strongest single force pushing upward on the S&P 500.

In the oil market, prices turned higher as uncertainty continues about what will happen with the Strait of Hormuz. A ceasefire is still in place between the United States and Iran, but oil tankers aren’t able to get through the narrow waterway off Iran’s coast to exit the Persian Gulf and reach customers.

The U.S. military on Thursday seized another tanker associated with the smuggling of Iranian oil, ratcheting up the standoff a day after Iran’s paramilitary Revolutionary Guards took control of two vessels in the strait. President Donald Trump also said Thursday he ordered the U.S. military to “shoot and kill” small Iranian boats that deploy mines to gum up traffic in the strait.

The price for a barrel of Brent crude, the international standard, for delivery in June rose 3.4% to $105.42 after bouncing between roughly $101 and $106 overnight. It’s unclear whether U.S.-Iran peace talks, previously hosted by Pakistan, would resume anytime soon.

More expensive oil has hurt airlines in particular because of the industry’s already big fuel bills, and stocks diverged in the industry following the latest profit reports.

American Airlines Group rose 1.5% after reporting better profit and revenue for the latest quarter than analysts expected. Even though winter storms hurt its revenue during the first three months of the year, American said demand was strong for flights, and it saw the nine best weeks for revenue intake in its 100-year history.

Southwest Airlines, though, lost 4.8% after reporting weaker quarterly results than analysts expected. It said it would not give an updated forecast for profit this year because of “the ongoing macroeconomic uncertainty.”

Also on the losing end of Wall Street was IBM, which sank 9.3% despite reporting better profit and revenue for the latest quarter than expected. Analysts said investors were focusing on potentially discouraging numbers underneath the surface, including decelerating growth in trends for its software business.

Warner Bros. Discovery fell 0.7% and Paramount Skydance fell 5.8%. An overwhelming majority of Warner Bros. Discovery shareholders approved selling the business to Paramount.

In stock markets abroad, indexes fell across much of Europe and Asia. Hong Kong’s Hang Seng fell 0.9%, and Japan’s Nikkei 225 sank 0.7% for two of the bigger losses.

South Korea’s Kospi climbed 0.9% after the government reported better-than-expected economic growth for the start of the year, boosted by strong exports, particularly of computer chips used in the AI boom. Semiconductor supplier SK Hynix said its revenue for the latest quarter jumped more than analysts expected largely because of AI-related demand.

In the bond market, the yield on the 10-year Treasury rose to 4.34% from 4.30% late Wednesday.

A report in the morning said slightly more U.S. workers applied for unemployment benefits last week, but the number is still at a historically healthy level. A separate, preliminary report on U.S. business output from S&P Global also suggested growth is improving a bit from its near-stagnation seen in March.