The S&P 500 and Nasdaq Composite both closed at fresh record highs on Thursday as a wave of strong earnings reports and a blockbuster deal in cloud computing gave investors reason to buy, even as geopolitical tensions in the Middle East kept a lid on the Dow. Technology and consumer-facing stocks led the charge, while oil prices climbed on renewed U.S.-Iran hostilities near the Strait of Hormuz.
What Moved Markets
The S&P 500 closed at 7,563.63, up 43.27 points (+0.58%), while the Nasdaq Composite surged 242.74 points (+0.91%) to finish at 26,917.47. The Dow Jones Industrial Average barely budged, adding just 24.69 points (+0.05%) to close at 50,668.97. All three indexes are now at or near all-time highs.
The session’s main catalyst was a strong batch of first-quarter earnings that reinforced the theme of a resilient U.S. consumer and continued momentum in AI-related spending. The technology sector gained 1.36% on the day, while health care rose 1.41%. Utilities and real estate were the weakest sectors, falling 1.13% and 0.47%, respectively.
Geopolitical risk remained in the background. Iran’s Revolutionary Guard launched strikes targeting a U.S. air base overnight, and crude oil climbed in response — West Texas Intermediate rose to roughly $90.26 per barrel. Diplomatic efforts to extend the ceasefire and reopen the Strait of Hormuz faced fresh challenges, though markets largely shrugged off the escalation during the trading session.
Notable Movers
Snowflake (SNOW) was the day’s standout, soaring roughly 37% after blowout first-quarter results and the announcement of a $6 billion deal with Amazon. The cloud data platform reported 33% sales growth and raised its full-year outlook, riding a powerful tailwind from enterprise AI adoption.
Best Buy (BBY) jumped about 17% after beating earnings expectations. The retailer posted $1.31 per share in profit on $8.94 billion in revenue, with strength in gaming, computing, and mobile phones driving a 2% comparable-sales increase.
Dollar Tree (DLTR) gained roughly 19% and Hormel (HRL) rose about 13%, both on better-than-expected quarterly results. Coming on the heels of solid reports from Walmart and Target last week, the results suggest the American consumer remains on solid footing despite inflation and tariff concerns.
Microsoft (MSFT) advanced 3.5% on news that the company plans to deploy in-house AI coding models, adding to the broader strength in AI-related names. Elsewhere, Synopsys (SNPS) fell about 9% despite an earnings beat and raised guidance, as investors took profits in the semiconductor design stock after a massive multi-year run.
Looking Ahead
Investors will be watching for after-hours earnings from Dell Technologies (DELL) — which already got a boost from a $9.7 billion Pentagon contract — along with reports from Costco (COST), MongoDB (MDB), Autodesk (ADSK), and Gap (GAP). The April Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, was released Thursday morning and will continue to shape expectations for the path of interest rates. With oil prices elevated and the U.S.-Iran situation fluid, traders should keep an eye on any developments in the Strait of Hormuz that could further disrupt energy markets heading into the weekend.