U.S. stocks were mixed in early trading on Thursday, with the Dow Jones Industrial Average rising more than 400 points. Traders were digesting the latest batch of corporate earnings reports, while oil prices edged lower. Data showed the U.S. core inflation rate rose to 3.2% in March, while first-quarter GDP grew by 2%.
The Dow Jones Industrial Average climbed 429.85 points, or 0.88%, to 49,291.66. The Nasdaq Composite fell 71.32 points, or 0.29%, to 24,601.92. The S&P 500 edged up 3.83 points, or 0.05%, to 7,139.78.
Caterpillar's stock surged 6% following better-than-expected quarterly results, boosting the Dow futures. Another Dow component, Amazon, also contributed to the gains, rising over 2% after releasing its strong first-quarter earnings report.
Notably, gains in the S&P 500 and Nasdaq were capped by declines in Meta Platforms and Microsoft, which fell 9% and 2%, respectively. Meta's stock was pressured by its latest capital expenditure guidance and disappointing user growth. Microsoft's stock retreated as the company indicated spending could reach $1.9 trillion due to high memory costs.
Oil prices reversed course on Thursday. Brent crude futures fell 3%, trading above $114 a barrel, while West Texas Intermediate crude futures dropped 2%, trading above $104 a barrel. On Wednesday, crude prices had risen amid ongoing high tensions between the U.S. and Iran overseas. Reports indicated that President Trump had instructed aides to prepare for a prolonged blockade against Iran.
Wall Street had just concluded a mixed session previously, with the Dow falling over 200 points on Wednesday, while the S&P 500 and Nasdaq ended largely flat.
Earlier, the Federal Reserve voted to maintain interest rates in the range of 3.5% to 3.75%, a decision 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 outgoing Fed Chair Jerome Powell before his term concludes next month. Kevin Warsh, nominated by Trump to succeed Powell, is expected to take the helm.
According to Sonu Varghese, Global Macro Strategist at Carson Group, more obstacles have emerged on the path to rate cuts. "The Fed held rates steady, and we expect this to persist for the remainder of the year," he said in an email Wednesday. "Several FOMC members were clearly uneasy about rising inflation and wanted to signal that the next move might not be a cut. With Powell choosing to remain on the Fed's board, proponents of rate cuts, including incoming Chair Kevin Warsh, are in the minority. Warsh will find it difficult to persuade the majority to cut 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 was poised for a 14.3% increase, putting both indices on pace for their best monthly performance since 2020. The Dow was headed for a 5.4% gain in April, its strongest monthly performance since November 2024.
On the economic data front Thursday, the U.S. core inflation rate rose to 3.2% in March, while first-quarter GDP grew by 2%.
As the U.S.-Israel conflict with Iran led to a spike in oil prices, presenting a new challenge for the Fed, American consumers faced rising prices in March.
The Commerce Department reported Thursday that the core Personal Consumption Expenditures Price Index, which excludes food and energy, rose 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 the more volatile food and energy components, was higher, rising 0.7% month-over-month and 3.5% year-over-year, also matching expectations.
In other economic news, the Commerce Department reported that first-quarter Gross Domestic Product grew at a seasonally adjusted annualized rate of 2%, up from 0.5% in the fourth quarter of 2025 but below the expectation of 2.2%.
The number of Americans filing first-time claims for unemployment benefits fell last week to its lowest level in decades, 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 was 212,000.
Continuing claims, which serve as a proxy for the number of people receiving benefits, fell to 1.79 million the prior week, the lowest level in two years.
The Federal Reserve held interest rates steady on Wednesday, with Chair Jerome Powell citing the labor market showing "increasing signs of stability" as one reason for not rushing to cut rates further.
Before seasonal adjustment, initial claims also fell last week. New York saw the largest drop, with claims falling by nearly 11,000, erasing the sharp increases from the previous two weeks. Significant decreases were also recorded in California and Connecticut.
Comments