Trump to decide within 10 days whether to attack Iran, oil prices soar, AI impact on software stocks becomes market focus

U.S. stocks closed lower across the board on Thursday. The Dow Jones Industrial Average fell 264 points, down 0.5%; the S&P 500 declined 0.3%; and the Nasdaq Composite also dropped 0.3%.

The market had just gained momentum the previous trading day driven by the strong rally of the “Magnificent Seven” tech giants, but now it quickly gave back some of those gains, reflecting investors’ ongoing doubts about the near-term outlook.

Trump: Decision on Iran Attack Within 10 Days

Geopolitical risks have become one of the biggest uncertainties in the market.

President Donald Trump stated on Thursday that he will decide within the next 10 days whether to launch a military strike against Iran. Trump made the remarks during his first meeting of the “Peace Commission.” “We may have to go further, or we may not,” Trump said. “Maybe we will reach an agreement. You will probably know the result within the next 10 days.”

He also emphasized, “For years, it has proven to be difficult to reach a meaningful agreement with Iran. We must achieve a truly meaningful deal, or bad things will happen.”

These comments heightened market alertness, as tensions between the U.S. and Iran escalate, prompting investors to assess the potential impact of military conflict on energy supplies and the global economy.

Oil Prices Surge: WTI Up 6% This Week, 16% Year-to-Date

Amid rising geopolitical risks, oil prices continue to climb.

As of 12:14 p.m. Eastern Time, U.S. West Texas Intermediate (WTI) crude rose $1.58, or 2.42%, to $66.77 per barrel; global benchmark Brent crude increased $1.56, or 2.22%, to $71.91 per barrel.

Since the start of the week, WTI has gained 6%, and this year it has risen 16%.

Market concerns center on the possibility that U.S. attacks on Iran could disrupt Middle Eastern oil supplies, further pushing energy prices higher and putting pressure on inflation and corporate costs.

Software Stocks Continue to Decline: AI Disruption Sparks New Wave

The tech sector also faced pressure, especially software stocks.

Salesforce dropped over 1%, Intuit declined 2%, and Cadence Design Systems fell 3%.

Recently, Mistral AI CEO Arthur Mensch stated that more than 50% of enterprise software could be replaced by AI in the future, a comment that continues to influence market sentiment. Investors worry that the proliferation of generative AI and automation tools could reshape traditional SaaS business models.

Chief Investment Officer: Market Leadership Is Shifting

Procyon CIO Antonio Rodrigues believes that recent market trends “confirm a change in leadership.”

He pointed out that going forward, it will be necessary to see profits emerge from the remaining 490 components of the S&P 500, rather than relying solely on a few tech giants to support the index.

Rodrigues is optimistic about industrial and non-essential consumer stocks, believing these sectors could benefit from efficiency gains driven by AI investments. He also emphasized that industries related to power grids and infrastructure still hold long-term growth potential, possibly representing structural themes for many years or even decades.

Market Enters a Critical Observation Period

From Trump’s potential decision within 10 days regarding Iran, to the strong rise in oil prices, and concerns over AI disrupting enterprise software, the U.S. stock market is currently facing multiple intertwined risks.

Although the declines are modest, market sentiment is clearly more cautious. In the coming weeks, geopolitical developments, oil price trends, and corporate earnings momentum will be key variables influencing Wall Street’s direction.

This article, titled “Trump to Decide on Iran Attack Within 10 Days, Oil Prices Surge, AI Disrupts Software Stocks Become Market Focus,” first appeared on Chain News ABMedia.