U.S. stocks surged to record highs on Thursday as corporate earnings and geopolitical developments shaped market sentiment, with the S&P 500 climbing 0.5% to a new peak amid mixed economic signals and oil price volatility. The Dow Jones Industrial Average edged slightly lower, while the Nasdaq Composite rose 0.8%, driven by tech stocks like Snowflake, which jumped 38.8% on AI-driven revenue growth. Meanwhile, oil prices fluctuated between $87 and $92 per barrel as tensions with Iran persisted, with U.S. Central Command reporting intercepted missiles from Iran late Wednesday.
Market Gains Amid Geopolitical Tensions
The S&P 500’s 0.5% rise to a new high underscored Wall Street’s resilience despite ongoing concerns about inflation and the U.S.-Iran conflict. The index had already set a record the prior day, with the Nasdaq Composite also hitting a benchmark after a strong start to 2026. AP News noted that corporate profits have consistently exceeded expectations, with retailers like Dollar Tree and Kohl’s seeing sharp gains. Dollar Tree’s stock surged 19% after reporting better-than-forecast earnings, with CEO Mike Creedon attributing improved profitability to “better store conditions” despite tariff pressures. Benzinga highlighted the company’s revised full-year earnings guidance, which surpassed analyst estimates.
The Nasdaq’s performance was fueled by Snowflake’s 38.8% spike, as AI-driven demand for cloud infrastructure bolstered its quarterly results. “Artificial intelligence continues to be a strong driver of our business,” the company stated, with both profit and revenue exceeding expectations. However, not all tech stocks fared well: Marvell Technology fell 3.1% despite reporting AI-related revenue growth, as its earnings matched but did not exceed analyst forecasts.
For more on this story, see Micron Hits $1 Trillion Milestone as Tech Rally Pushes Nasdaq to Record Highs.
Oil Price Volatility and Regional Tensions
Oil prices remained unstable, rising 0.4% to $89.04 per barrel after oscillating between $87 and $92 amid shifting hopes for a U.S.-Iran ceasefire. Benzinga reported that a 60-day ceasefire extension between Washington and Tehran initially buoyed markets, but the deal’s details remained unclear. Earlier in the week, U.S. Central Command confirmed that Kuwait had intercepted missiles launched by Iran, escalating fears of broader conflict in the Persian Gulf. This development added to the uncertainty surrounding global oil supply, with prices reacting to both diplomatic progress and military posturing.
The volatility underscored the market’s sensitivity to geopolitical risks. “The Strait of Hormuz remains a critical chokepoint, and any disruption could send oil prices through the roof,” said a geopolitical analyst quoted in AP News. Investors are now closely watching for clarity on the ceasefire terms and the likelihood of renewed hostilities.
Corporate Earnings and Sector-Specific Momentum
Several sectors saw significant gains, with consumer discretionary stocks leading the charge. Kohl’s climbed 18.9% after reporting “better results than feared,” while Best Buy surged 18% on strong quarterly profits. Hormel Foods also benefited from robust demand for its Jennie-O ground turkey and Spam products, with shares rising 13.1%. AP News noted that these results reflected a “consumer that is no longer outrunning prices,” as first-quarter GDP was revised lower by 0.4 percentage points due to weaker investment.
This follows our earlier report, Dow Jones Hits Record High of 50,600 as U.S. Stocks Rally on Easing Yields.
The life-sciences sector also saw strong performance, with Agilent Technologies jumping 17% after reporting $1.83 billion in fiscal Q2 revenue and $1.49 in non-GAAP EPS. However, not all companies fared well: Everpure Inc. tumbled 12% after its Q2 revenue guidance fell short of expectations, despite beating earnings estimates. Benzinga highlighted the contrast, noting that “beat-and-raise” stories like Agilent’s were overshadowed by firms like Everpure that struggled to meet revenue targets.
Inflation Data and the Fed’s Dilemma
The Federal Reserve’s preferred inflation measure, the PCE, rose 3.8% year-over-year in April, the highest since early 2023, though core PCE climbed only 0.2% monthly. Benzinga reported that real personal spending grew just 0.1%, with personal income essentially flat, painting a picture of a consumer under pressure.
