The New York stock market closed lower on the 6th (local time) as concerns over crude oil shipping routes escalated following news that Iran is pushing for a bill to block U.S. and Israeli vessels from passing through the Strait of Hormuz.

According to Iran's Fars News Agency, the Iranian Parliament's National Security Committee is reviewing a bill that would completely ban vessels from hostile nations, including the United States and Israel, from navigating the Strait of Hormuz. As the possibility of a blockade of this strait, a key crude oil shipping route for Middle Eastern oil-producing countries, was raised, international oil prices rose across the board. On the ICE Futures Exchange, October-delivery Brent crude futures closed at $82.49 per barrel, up 3.8% from the previous trading day, while September-delivery WTI futures on the New York Mercantile Exchange rose 2.8% to settle at $77.29 per barrel.

Meanwhile, semiconductor stocks struggled amid broad weakness. SanDisk fell 6.8%, as its future earnings guidance fell short of investor expectations despite revenue and net income exceeding market forecasts. Western Digital also plummeted 13.0% despite solid earnings, while Micron dropped 1.3% and SK Hynix U.S. Depositary Receipts (ADR) declined 5.0%.

All three major U.S. indices declined. The Dow Jones Industrial Average closed at 53,885.10, down 464.02 points (0.9%) from the previous session, recording the steepest decline among the three major indices. The S&P 500 index fell 13.61 points (0.2%) to 7,709.95, and the Nasdaq Composite dropped 15.09 points (0.1%) to 26,348.35.

In the New York stock market that day, major indices remained weak throughout the session as profit-taking sell-offs flooded in, centered on stocks that had recently shown strong upward momentum. The S&P 500 and Nasdaq fluctuated around the flatline early in the session before turning lower as selling pressure in large-cap tech stocks persisted. However, the Nasdaq's decline was limited to 0.06%, and some assessments suggested that investment sentiment toward artificial intelligence (AI)-related stocks partially supported the market.

Investors are focused on the Federal Reserve's (Fed) monetary policy direction and upcoming economic indicators as the corporate earnings season nears its end. CNBC reported that the stock market has entered a "breather" phase following its recent rally, explaining that investors are confirming additional economic data and corporate earnings while seeking their next investment strategies.

Bret Kenwell, an investment analyst at U.S. investment firm eToro, analyzed that given the rapid rise in the stock market driven by corporate earnings and AI optimism, a short-term profit-taking pressure was inevitable at this juncture. However, he assessed that as long as economic indicators and corporate earnings do not significantly deviate from market expectations, the current correction is closer to a healthy breather than a trend reversal.