U.S. stocks were mixed on Thursday as investors weighed easing geopolitical tensions, cooling oil prices, and another wave of corporate earnings. The Nasdaq Composite climbed roughly 0.5% while the S&P 500 added about 0.2%, extending its record-setting rally as enthusiasm around artificial intelligence continued to support technology shares.
The Dow Jones Industrial Average slipped modestly, falling around 0.1%, as weakness in several consumer-facing and industrial names offset gains in high-growth tech stocks. Investors also monitored developments in the Middle East, where reports suggested Iran may soon respond to a U.S.-backed peace proposal aimed at ending the near-10-week conflict that has rattled energy markets.
Market Movers:
- Datadog (DDOG) +26% – Shares surged after the cloud monitoring and cybersecurity company delivered a strong earnings beat and raised its full-year guidance. Management cited accelerating AI demand as a major growth driver, including new large-scale deals tied to hyperscale AI workloads.
- Fortinet (FTNT) +23% – The cybersecurity company rallied after posting stronger-than-expected quarterly revenue and profit growth. Investors responded positively to raised full-year guidance and continued enterprise demand for network security products amid expanding AI infrastructure spending.
- Sezzle (SEZL) +23% – Shares jumped after the fintech company beat earnings expectations and raised its outlook for revenue growth and adjusted earnings. Improved operating efficiency and subscriber growth helped reinforce optimism around the company’s momentum.
- Cross Country Healthcare (CCRN) +29% – The healthcare staffing firm soared after agreeing to be acquired by private equity firm Knox Lane in an all-cash deal. The acquisition offered shareholders a sizable premium and marked another sign of consolidation activity in the healthcare services sector.
- Whirlpool (WHR) -13% – Shares fell sharply after the appliance maker warned that demand conditions had deteriorated to levels not seen since the financial crisis. Weak consumer sentiment and slowing discretionary spending weighed heavily on first-quarter results and guidance.
- Planet Fitness (PLNT) -35% – The fitness chain plunged after lowering portions of its full-year outlook despite posting quarterly earnings and revenue beats. Investors focused on slowing member growth during a key seasonal sign-up period and broader concerns about consumer spending trends.
- Fastly (FSLY) -34% – Shares tumbled as investors reacted negatively to softer guidance and concerns about the pace of long-term growth. Although the company beat quarterly estimates, cautious forward commentary overshadowed otherwise solid security revenue growth.
- Shake Shack (SHAK) -29% – The restaurant operator sank after missing Wall Street expectations on both revenue and earnings. Margin pressure and declining profitability overshadowed steady same-store sales growth and continued restaurant expansion efforts.
Oil Prices Fall as Markets Watch Iran Negotiations
Energy markets remained front and center Thursday as traders monitored developments surrounding a possible U.S.-Iran agreement. Brent crude dropped below $100 per barrel amid expectations that tensions in the Strait of Hormuz could ease if diplomatic progress continues. The decline in oil prices helped lift broader market sentiment by reducing fears of another inflation spike. Lower crude prices also offered relief to sectors sensitive to energy costs, while investors rotated back toward growth-oriented technology shares.
AI Spending Boom Continues to Reshape Big Tech
AI remained one of Wall Street’s dominant themes as investors continued digesting earnings from major technology firms. Companies including Alphabet, Amazon, Meta, and Microsoft are dramatically increasing capital expenditures to build out AI infrastructure, including data centers, chips, and cloud capacity. That spending boom is fueling strong growth across semiconductor, cybersecurity, and cloud software companies. However, investors are increasingly scrutinizing whether these massive investments will eventually translate into stronger free cash flow and sustainable profitability.
Labor Market Signals Stay in Focus
Fresh labor data painted a mixed picture of the economy. Weekly jobless claims came in lower than expected, suggesting the labor market remains relatively resilient ahead of Friday’s closely watched monthly jobs report. At the same time, new reports showed layoffs in the technology sector continue to rise, with many companies citing AI-driven restructuring efforts. Inflation expectations also ticked higher in April, reflecting ongoing concerns about energy costs and broader economic uncertainty.
Looking Ahead
Investors now turn their attention toward Friday’s monthly jobs report, which could shape expectations for Federal Reserve policy and the next leg of the market rally. A resilient labor market could reinforce confidence in the economy, though stronger-than-expected data may also complicate hopes for future rate cuts. Meanwhile, the AI trade continues to dominate market leadership. As companies pour billions into infrastructure and cloud expansion, Wall Street will be watching closely to see whether earnings growth can continue justifying soaring valuations across the technology sector.