Wall Street mixed near records as oil whipsaws on Middle East risks, earnings
Wall Street drifted near record territory Thursday as a sharp swing in oil prices and an uneven batch of corporate results split major indexes. The Dow Jones Industrial Average rose about 0.88%, the Nasdaq Composite fell roughly 0.31%, and the S&P 500 was little changed.
Markets were also on track for their best month since 2020. Investors weighed earnings against fresh geopolitical risks and economic data. “I think there’s this big tug of war, but the earnings side is winning so far,” said Angelo Kourkafas, senior global investment strategist at Edward Jones.
“Market is trying to look through that near-term uncertainty, but of course, the longer it lasts, the more acute the pressures are.” Sector rotation kept trading choppy, with strength in some large-cap names offset by weakness elsewhere. Oil underscored the day’s volatility.
Brent crude surged to levels not seen in nearly four years, moving above $110 a barrel during the session on reports that rising tensions in the Middle East could disrupt supply, before pulling back later. Traders reacted to headlines about shipping routes, potential military developments, and possible restrictions on key corridors linked to Iran.
“There also appears to be an increased urgency from the Trump administration to bring things to a head,” said David Morrison, senior market analyst at Trade Nation, noting the market’s rapid intraday reversals. Earnings from major technology companies drove sharp moves across the sector.
Alphabet gained about 6% after reporting strong results supported by growth in its cloud business. Meta Platforms fell more than 8% after outlining higher planned spending on artificial intelligence infrastructure. Microsoft declined around 4% after announcing increased capital expenditure, and Amazon slipped slightly despite stronger-than-expected cloud revenue.
The divergence reflected investor sensitivity to rising investment costs tied to AI expansion. Outside tech, several companies climbed on solid updates. Eli Lilly advanced about 7% after raising its profit forecast, helped by demand for weight-loss treatments.
Caterpillar rose more than 8% after reporting higher quarterly profit driven by equipment demand. Economic data offered a mixed picture. U.S. gross domestic product grew at a 2.0% annual rate in the first quarter, below expectations of 2.3%, pointing to moderate expansion.
The Personal Consumption Expenditures index rose 3.5% year over year, matching forecasts, while core inflation also came in as expected, suggesting steady price pressures. Treasury yields moved lower after the reports, reflecting shifting rate expectations.
The Federal Reserve kept interest rates unchanged at its latest meeting and maintained a cautious stance on inflation, with some officials signaling that price levels remain above target. With equities hovering near records, investors remained focused on the durability of earnings, headline-driven oil moves, and the trajectory of inflation and interest rates.