U.S. stocks opened with mixed results on Thursday evening, Beijing time. Traders were assessing the latest batch of corporate earnings reports, while oil prices experienced a slight decline. The core inflation rate in the U.S. for March rose to 3.2%, and first-quarter GDP grew by 2%.
The Dow Jones Industrial Average fell by 30.85 points, or 0.06%, to 48,830.96. The Nasdaq Composite gained 163.67 points, or 0.66%, to reach 24,836.91. The S&P 500 increased by 34.44 points, or 0.48%, to 7,170.39.
Notably, gains in the S&P 500 and Nasdaq were limited due to declines in Meta Platforms and Microsoft, which fell by 9% and 2% respectively. Meta's stock was pressured by its latest capital expenditure guidance and disappointing user growth. Microsoft's stock retreated after the company indicated that expenditures could reach $1.9 trillion due to high memory costs.
Oil prices reversed course on Thursday. Brent crude futures fell by 3%, trading above $114 per barrel, while West Texas Intermediate crude futures declined by 2%, trading above $104 per barrel. On Wednesday, crude prices had risen amid ongoing high tensions between the U.S. and Iran overseas. Reports indicated that the President had instructed aides to prepare for a prolonged blockade against Iran.
Wall Street had just concluded a mixed trading session, with the Dow falling over 200 points on Wednesday, while the S&P 500 and Nasdaq ended the day largely unchanged.
Previously, the Federal Reserve voted to maintain interest rates within the range of 3.5% to 3.75%, which was largely in line with investor expectations. However, the 8-4 vote marked the first time since 1992 that four Fed officials dissented.
The April Fed policy meeting was likely the last chaired by Chairman Jerome Powell before his term concludes next month. Kevin Warsh, nominated to succeed Powell, is expected to take over leadership of the Fed.
Sonu Varghese, Global Macro Strategist at Carson Group, suggested that more obstacles have emerged on the path to rate cuts. In an email on Wednesday, he stated, "The Fed held rates steady, and we expect this stance to continue for the remainder of the year. Several FOMC members are clearly uneasy about rising inflation and wish to signal that the next move might not be a cut. With Powell choosing to remain on the Board, proponents of rate cuts, including incoming Chair Kevin Warsh, are in the minority. Warsh will find it difficult to persuade the majority to lower rates."
Thursday also marked the final trading day of April, a month that saw significant gains for technology stocks. The S&P 500 was on track for a 9.3% monthly gain, and the Nasdaq for a 14.3% gain, positioning both indices for their best monthly performance since 2020. The Dow was projected to rise 5.4% for April, its strongest monthly performance since November 2024.
In economic data released on Thursday, the U.S. core inflation rate for March climbed to 3.2%, and first-quarter GDP expanded by 2%.
American consumers faced rising prices in March as the war involving the U.S. and Israel against Iran led to a surge in oil prices, presenting new challenges for the Federal Reserve.
The Commerce Department reported on Thursday that the core Personal Consumption Expenditures price index, which excludes food and energy, increased by a seasonally adjusted 0.3% for the month, pushing the 12-month inflation rate to 3.2%. This reading matched the Dow Jones consensus expectation.
The headline inflation figure, which includes volatile components like gasoline and food, was higher, rising 0.7% month-over-month and reaching 3.5% year-over-year, also aligning with expectations.
In other economic news, the Commerce Department reported that first-quarter Gross Domestic Product grew at a seasonally adjusted annualized rate of 2%. This was an improvement from the 0.5% growth in the fourth quarter of 2025 but fell short of the 2.2% expectation.
The number of Americans filing for unemployment benefits for the first time fell to its lowest level in decades last week, suggesting that announcements of layoffs have not yet translated significantly into actual job cuts.
Data from the Labor Department on Thursday showed that initial jobless claims decreased by 26,000 to 189,000 in the week ending April 25. The median forecast from economists had been 212,000 claims.
Continuing jobless claims, which serve as a proxy for the number of people receiving benefits, declined to 1.79 million the prior week, reaching their lowest level in two years.
The Federal Reserve held interest rates steady on Wednesday, with Chairman Jerome Powell citing a labor market showing "increasing signs of stability" as one reason for not rushing into further rate cuts.
Before seasonal adjustment, initial jobless claims also fell last week. New York state led the decline, with claims dropping by nearly 11,000, reversing the significant increases seen in the previous two weeks. California and Connecticut also reported notable decreases in claims.
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