US Stocks Drift as Oil Prices Rise on Potential US-Iran Conflict

Walmart earnings report mixed, while Booking Holdings and Carvana stocks fall on AI disruption fears

Published on Feb. 25, 2026

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U.S. stocks traded lower on Thursday as oil prices rose due to renewed concerns about a potential military confrontation between the United States and Iran. The S&P 500 slipped 0.2%, while the Dow Jones Industrial Average dipped 184 points, or 0.4%. Booking Holdings and Carvana stocks fell on worries about AI technology disrupting their industries, while Walmart's earnings report was mixed. Oil prices climbed as the threat of a U.S.-Iran conflict loomed.

Why it matters

Tensions between the U.S. and Iran have the potential to disrupt global oil supplies, which could impact the broader economy and stock market. Additionally, the market's reaction to the threat of AI disruption in various industries highlights investor concerns about technological change and its impact on established businesses.

The details

U.S. stocks traded lower on Thursday as oil prices rose due to renewed concerns about a potential military confrontation between the United States and Iran. The S&P 500 slipped 0.2%, while the Dow Jones Industrial Average dipped 184 points, or 0.4%. Booking Holdings, the parent company of Booking.com, Priceline and OpenTable, dropped 7.1% on worries that AI-powered competitors could disrupt its business. Carvana, an online auto retailer, also fell 5.3% despite reporting stronger-than-expected profits, as investors focused on lower-than-expected profit per vehicle sold. Walmart's earnings report was mixed, with the retail giant delivering stronger results than expected but providing a profit forecast for the upcoming year that fell short of estimates.

  • On Thursday, February 19, 2026, U.S. stocks traded lower in morning trading.

The players

Booking Holdings

The parent company of Booking.com, Priceline and OpenTable, which has seen its stock come under pressure due to worries that AI-powered competitors could disrupt its business.

Carvana

An online auto retailer that reported stronger-than-expected profits, but saw its stock fall as investors focused on lower-than-expected profit per vehicle sold.

Walmart

The retail giant that delivered stronger results than expected for the end of its last fiscal year, but provided a profit forecast for the upcoming year that fell short of estimates.

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The takeaway

The market's reaction to the threat of AI disruption in various industries highlights investor concerns about technological change and its impact on established businesses. Additionally, the rise in oil prices due to the potential for a U.S.-Iran conflict underscores the market's sensitivity to geopolitical tensions and their potential to disrupt the broader economy.