Stocks recovered from early losses Thursday as investors weighed Middle East negotiations, corporate earnings, and signs of continued U.S. economic resilience.
By yourNEWS Media Newsroom
Wall Street stocks closed higher Thursday, with the DJIA finishing above 50,000 for the first time in history as investors balanced geopolitical tensions involving Iran against hopes for a diplomatic breakthrough and continued economic strength in the United States.
After trading lower during the morning session, major indexes recovered in afternoon trading as oil prices reversed earlier gains and moved lower amid shifting investor sentiment surrounding negotiations between Washington and Tehran.
According to preliminary market data, the Dow Jones Industrial Average climbed 278.91 points, or 0.56 percent, to close at a record 50,288.26.
The S&P 500 gained 11.54 points, or 0.16 percent, ending at 7,444.51, while the NASDAQ Composite rose 25.82 points, or 0.09 percent, to close at 26,296.18.
Markets remained highly sensitive throughout the session to developments involving Iran’s nuclear program and ongoing ceasefire negotiations in the Middle East.
Marco Rubio told reporters there had been “some good signs” in diplomatic talks with Iran but warned that an agreement would become difficult if Tehran implemented tolling measures in the Strait of Hormuz, a critical global oil shipping route.
Earlier in the day, Reuters reported that Mojtaba Khamenei had issued a directive preventing Iran’s enriched uranium stockpile from leaving the country.
At the same time, Donald Trump stated Thursday that the United States would ultimately recover Iran’s highly enriched uranium stockpile, which Washington believes could be used for nuclear weapons development.
Iran has repeatedly denied pursuing nuclear weapons and maintains its nuclear program is intended for civilian purposes.
Jason Pride said market volatility reflected investor reactions to geopolitical uncertainty following the conclusion of most corporate earnings reports.
“We’re sitting at high levels of valuation partly driven by earnings,” Pride said. “Now earnings season is largely over, which means that market attention is back to Iran.”
Marc Dizard said investors remained focused on whether the fragile ceasefire in the region would hold.
“The silver lining is that from a market perspective, the fragile ceasefire is still holding,” Dizard said. “Oil and market sentiment is very sensitive to every headline.”
Oil prices fluctuated sharply throughout the trading session as investors monitored reports related to negotiations and military tensions.
Corporate earnings also influenced trading activity.
Shares of Walmart declined after the retailer projected second-quarter profits below analyst expectations while maintaining its annual guidance.
Chief Financial Officer John David Rainey said consumers continue facing pressure from elevated fuel prices and broader inflationary concerns.
“If elevated cost environment persists, we’d expect somewhat higher retail price inflation in Q2 and the second half of the year,” Rainey said.
The consumer staples sector led losses within the S&P 500 as additional retailers including Costco Wholesale and Casey’s General Stores also declined.
Meanwhile, shares of NVIDIA fell as investors took profits despite the company issuing an upbeat revenue forecast and announcing an $80 billion stock repurchase program.
Nvidia’s stock has surged this year amid continued enthusiasm surrounding artificial intelligence technology, though investors increasingly anticipate intensified competition from rivals such as Intel and Advanced Micro Devices.
Economic reports released Thursday also supported investor confidence.
Weekly jobless claims declined, signaling continued labor market strength and potentially giving the Federal Reserve additional flexibility to maintain its focus on inflation concerns.
U.S. manufacturing activity also reportedly climbed to a four-year high in May as businesses increased inventories amid concerns about supply disruptions and rising costs tied to Middle East instability.
Technology stocks connected to quantum computing rallied after reports that the Trump administration plans to financially support several quantum computing ventures in exchange for ownership stakes.
Shares of IBM advanced alongside gains in D-Wave Quantum, Rigetti Computing, GlobalFoundries, and Infleqtion.
Meanwhile, shares of Intuit dropped sharply after the company lowered annual revenue guidance for its TurboTax software division and announced plans to reduce its workforce by 17 percent.