US close: Dow hits record high as oil prices fall, but gains limited

(Sharecast News) - US stocks saw moderate gains on Thursday, but that was enough to send the Dow Jones Industrial Average to its highest-ever closing level, as oil prices retreated on the back of tentative hopes of a possible peace deal between Washington and Tehran.

The Dow finished 0.6% higher at a new high of 50,285.66, topping earlier records reached in February, while the S&P 500 and Nasdaq gained 0.2% and 0.1% respectively.

Brent crude settled at $102.58 a barrel, down from $105.02 the previous day and well below the $112+ levels seen earlier in the week, but had seesawed throughout the day on the back of newsflow from Tehran.

"Stocks had been steady and oil prices had dropped, but then headlines suggested the Iranian supreme leader would not allow enriched uranium to leave Iran. Hopes of progress were shattered, at least it seemed that way," said Chris Beauchamp, chief market analyst at IG.

"But later the headline was denied, leaving investors none the wiser. Weeks of this lie ahead, potentially months, but Hormuz remains closed, a ticking timebomb underneath the global economy."

Oil fell sharply on Wednesday after president Donald Trump claimed that peace talks with Iran were in their final stages.

However, Israeli prime minister Benjamin Netanyahu said he would not consider the war over until enriched uranium was removed from Iran, Tehran ended support for proxy militias and its ballistic missile capabilities were eliminated.

The other major news of the day was another blockbuster earnings report from Nvidia, released after the markets closed on Wednesday, which received a lukewarm reaction from investors with the stock finishing down 2%. That came despite the company smashing expectations, beating forecasts with its forward guidance, raising its dividend by 25 times and adding a whopping $80bn to its share buyback plan.

"These were blockbuster results, even by its increasingly absurd standards, with revenue up 85% year-on-year and both revenue and earnings exceeding already high expectations," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"The question from here is not whether demand is strong today, but how long this level of growth can keep outrunning expectations. NVIDIA still looks exceptionally well placed, with its strength stretching beyond chips into networking, software and full data centre systems, which makes it difficult for rivals or in-house alternatives to match at scale."

Others in the sector finished mixed, with Intel and Broadcom falling, and AMD and Micron Tech edging higher.

In other equity news, shares in Walmart dropped after the retail giant posted a rise in first-quarter sales and profits but issued softer-than-expected projections for the current quarter. Walmart reaffirmed its full-year guidance for fiscal 2027, forecasting annual sales growth of between 3.5% and 4.5%, albeit at the upper end of the range, but second-quarter profit guidance of 72 to 74cents a share came in slightly below Wall Street forecasts.

Meanwhile, quantum computing stocks jumped after the US Department of Commerce said it will award $2bn in grants to nine quantum computing companies including IBM, D-Wave Quantum, Rigetti Computing, Infleqtion and GlobalFoundries.

Investors were also digesting the news that Elon Musk's SpaceX is set to debut on the New York Stock Exchange some time next month, with the aerospace and AI company potentially valued at $1.75trn.

"This could be a blockbuster summer for IPOs with OpenAI also expected to list in the coming weeks. Thus, we could get two mega cap IPOs within weeks of each other. How the market absorbs these new listings will be crucial for the future of the AI trade, as both companies are at the heart of the AI revolution," said Kathleen Brooks, research director at XTB.

In economic data, US manufacturing growth hit its highest level since 2022, with the S&P Global manufacturing PMI hitting 55.3 in May from 54.5 the month before, smashing the 54.0 consensus forecast.

In other news, US jobless claims fell 3,000 to 209,000 last week, more or less in line with the 210,000 consensus forecast. US housing starts and building permits data both came in better than expected, while the Philly Fed manufacturing index disappointed.

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $252.97 12.43%

Amgen Inc. (AMGN) $337.42 2.59%

Merck & Co. Inc. (MRK) $115.88 2.55%

Cisco Systems Inc. (CSCO) $118.20 1.83%

Apple Inc. (AAPL) $304.99 1.62%

Microsoft Corp. (MSFT) $419.09 1.59%

McDonald's Corp. (MCD) $284.18 1.40%

3M Co. (MMM) $151.60 1.22%

Intel Corp. (INTC) $118.50 1.13%

Johnson & Johnson (JNJ) $231.73 1.05%

Dow Jones - Fallers

Salesforce.Com Inc. (CRM) $176.31 -2.10%

Boeing Co. (BA) $219.61 -1.17%

Dow Chemical Co. (DOW) $35.91 -0.99%

Caterpillar Inc. (CAT) $865.95 -0.76%

Walt Disney Co. (DIS) $103.58 -0.48%

Coca-Cola Co. (KO) $81.17 -0.47%

Unitedhealth Group Inc. (UNH) $382.48 -0.21%

Chevron Corp. (CVX) $191.01 -0.17%

American Express Co. (AXP) $309.70 -0.04%

S&P 500 - Risers

Advance Auto Parts (AAP) $58.62 14.40%

Ralph Lauren Corp (RL) $374.90 13.87%

International Business Machines Corporation (CDI) (IBM) $252.97 12.43%

American Airlines Group (AAL) $13.59 11.53%

United Airlines Holdings Inc (UAL) $99.64 10.70%

LKQ Corporation (LKQ) $26.88 10.66%

QUALCOMM Inc. (QCOM) $213.41 8.89%

TripAdvisor Inc. (TRIP) $9.90 8.14%

Seagate Technology Plc (STX) $810.46 7.71%

Lam Research Corp. (LRCX) $302.24 7.37%

S&P 500 - Fallers

Intuit Inc. (INTU) $307.07 -19.39%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Apache Corp. (APA) $38.34 -7.09%

Deere & Co. (DE) $531.35 -5.19%

Valero Energy Corp. (VLO) $241.09 -5.00%

H&R Block Inc. (HRB) $37.89 -4.80%

Cummins Inc. (CMI) $638.78 -4.64%

Diamondback Energy Inc. (FANG) $200.97 -4.05%

Marathon Petroleum Corporation (MPC) $248.43 -3.85%

HF Sinclair Corporation (DINO) $68.39 -3.84%

Nasdaq 100 - Risers

American Airlines Group (AAL) $13.59 11.53%

Sirius XM Holdings Inc (SIRI) $28.99 9.85%

QUALCOMM Inc. (QCOM) $213.41 8.89%

Biomarin Pharmaceutical Inc. (BMRN) $54.10 8.18%

Seagate Technology Plc (STX) $810.46 7.71%

Lam Research Corp. (LRCX) $302.24 7.37%

Cadence Design Systems Inc. (CDNS) $358.46 7.12%

Dollar Tree Inc (DLTR) $95.71 6.31%

Asml Holdings N.V. (ASML) $1,592.00 6.17%

Micron Technology Inc. (MU) $762.10 6.10%

Nasdaq 100 - Fallers

Intuit Inc. (INTU) $307.07 -19.39%

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

JD.com, Inc. (JD) $31.47 -3.29%

Analog Devices Inc. (ADI) $384.21 -3.22%

Baidu Inc. (BIDU) $131.18 -2.91%

Costco Wholesale Corp. (COST) $1,050.45 -2.87%

Texas Instruments Inc (TXN) $298.39 -2.13%

Starbucks Corp. (SBUX) $104.13 -1.82%

Workday, Inc. (WDAY) $121.85 -1.46%

Microchip Technology Inc. (MCHP) $91.11 -1.42%