US close: Stocks higher after Washington and Tehran sign MOU to extend ceasefire

(Sharecast News) - Major indices were in the green at the close of trading on Thursday as investors thumbed over a key inflation reading and digested fresh headlines coming out of the Middle East.

At the close, the Dow Jones Industrial Average was up 0.05% at 50,668.97, while the S&P 500 advanced 0.58% to 7,563.63 and the Nasdaq Composite saw out the session 0.91% firmer at 26,917.47.

The Dow closed 24.69 points higher on Thursday, extending gains recorded in the previous session.

Wall Street stocks hit their session highs after Axios reported that the US and Iran had struck a 60-day memorandum of understanding to extend their current ceasefire, with further negotiations on Iran's nuclear program. However, Donald Trump has not yet given the agreement his support.

Oil prices eased from their highs following the news, with West Texas Intermediate crude oil futures up 0.25% at the close of trading to settle at $88.90 per barrel after hitting session highs earlier in the day on the back of an announcement from Iran's Revolutionary Guard that it targeted a US airbase, according to the Tasnim News Agency. Tehran's strike comes hot on the heels of the US military's new strikes on a military site in Iran.

Outside of Middle East developments, Thursday's primary focus was April's personal consumption expenditures index, which revealed US inflation was broadly in line with expectations in April, with the Federal Reserve's preferred gauge showing little change in underlying price pressures, even as household spending continued to rise.

According to the Bureau of Economic Analysis, the personal consumption expenditures price index increased 0.4% on the month and 3.8% yearonyear, matching forecasts, while core PCE, which strips out volatile food and energy costs, rose 0.2% on the month and 3.3% annually. Personal income was broadly flat, edging down by less than $100m, while disposable personal income slipped 0.1%, or $19.9bn. Personal consumption expenditures rose by $111.1bn, a 0.5% increase, driven by higher spending on both services and goods. Real PCE was up 0.1%. Personal outlays climbed $114bn, and the saving rate eased to 2.6%, with total savings at $611.7bn.

Elsewhere on the macro front, Americans lined up for unemployment benefits at an accelerated clip in the week ended 23 May, accordinf to the Labor Department, rising by 5,000 to 215,000 - above expectations for a softer 1,000 increase. Continuing claims increased by 15,000 to 1.78m, while the four-week moving average, which aims to strip out week-to-week volatility, rose bby 6,250 to 209,000. However, despite the modest uptick, both measures remained below last year's averages and continued to point to a resilient US labour market. Elsewhere, the advance seasonally adjusted insured unemployment rate was 1.2% for the week ended 16 May, unchanged from the previous week's unrevised rate.

On another note, the US economy grew less than originally estimated in the first quarter of 2026, according to amended figures out on Thursday from the Bureau of Economic Analysis, with both investment and consumer spending figures revised lower. US gross domestic product increased at a year-on-year rate of 1.6% over the first three months, marking an acceleration from the 0.5% growth registered in the fourth quarter of 2025. However, this was well below the 2% growth initially reported at the end of April - which itself was below the 2.3% consensus forecast at the time of release. Consumer spending rose at an annualised rate of just 1.4% in the first quarter, below the 1.6% initially stated, while gross private investment growth was revised down to 7% from 8.7%.

Still on data, US durable goods orders surged in April, according to the Census Bureau, rising 7.9% to $346bn for the strongest monthly increase since May 2025. April's durable goods reading far outpaced expectations for a 3.5% gain and followed an upwardly revised 1.3% rise in March, driven largely by a 21.5% increase in transportation equipment, including a sharp 165.9% rise in nondefence aircraft and parts. Capital goods orders were also strong, up 21%, while orders also increased across several other categories, including fabricated metal products, up 3.5%, and primary metals, up 1.9%. Computer and electronic products, on the other hand, fell 0.7%.

Finally, new home sales fell to 622,000 in April, according to the Census Bureau, down from 663,000 in March and missing consensus estimates for a modest increase to 670,000.

In the corporate space, tech stocks traded higher after Snowflake issued strong earnings guidance, which helped to reignite enthusiasm surrounding the artificial intelligence trade, with shares surging 36.5%. Snowflake also posted a quarterly beat on both the top and bottom lines and announced a plan to spend $6bn on Amazon Web Services over the next five years.

Dollar Tree said comparable sales had come in higher last quarter as price rises offset a decline in customer traffic, jumping 3.5% in the first quarter and topping estimates, while Best Buy reported Q1 results that came in ahead of Wall Street expectations as key product launches and higher tax refunds gave sales a boost.

Costco outperformed Wall Street estimates on earnings per share and membership fees but fell short of revenue expectations as budget-conscious consumers spent less than analysts expected, while Dell Technologies traded higher in extended trading after the IT giant posted first-quarter results and guidance that topped Wall Street estimates.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Microsoft Corp. (MSFT) $426.99 3.64%

International Business Machines Corporation (CDI) (IBM) $264.22 3.53%

Nike Inc. (NKE) $47.37 3.02%

Boeing Co. (BA) $228.78 2.00%

Goldman Sachs Group Inc. (GS) $1,008.37 1.19%

Home Depot Inc. (HD) $321.21 1.06%

American Express Co. (AXP) $315.12 0.83%

Dow Chemical Co. (DOW) $34.77 0.81%

Apple Inc. (AAPL) $312.51 0.73%

Cisco Systems Inc. (CSCO) $118.64 0.47%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $887.67 -2.45%

Intel Corp. (INTC) $120.89 -1.95%

Travelers Company Inc. (TRV) $294.31 -1.88%

3M Co. (MMM) $152.85 -1.50%

Coca-Cola Co. (KO) $80.41 -1.48%

Procter & Gamble Co. (PG) $145.91 -1.07%

McDonald's Corp. (MCD) $277.97 -1.05%

JP Morgan Chase & Co. (JPM) $296.73 -0.85%

Visa Inc. (V) $324.95 -0.81%

Salesforce.Com Inc. (CRM) $176.17 -0.75%

S&P 500 - Risers

Kohls Corp. (KSS) $15.59 20.57%

Dollar Tree Inc (DLTR) $113.00 19.43%

Agilent Technologies Inc. (A) $135.38 16.87%

Best Buy Co. Inc. (BBY) $74.74 15.80%

Hormel Foods Corp. (HRL) $23.59 12.55%

Illumina Inc. (ILMN) $158.70 9.36%

IQVIA Holdings Inc. (IQV) $181.09 9.34%

Capri Holdings Limited (CPRI) $19.74 8.05%

TripAdvisor Inc. (TRIP) $10.90 7.39%

Waters Corp. (WAT) $366.67 7.16%

S&P 500 - Fallers

Synopsys Inc. (SNPS) $480.64 -9.90%

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

Tyson Foods Inc. (TSN) $62.00 -6.09%

Norfolk Southern Corp. (NSC) $307.88 -5.47%

KLA-Tencor Corp. (KLAC) $1,927.63 -4.57%

Union Pacific Corp. (UNP) $267.00 -4.43%

Corning Inc. (GLW) $182.97 -4.15%

Ross Stores Inc. (ROST) $227.20 -3.97%

Cincinnati Financial Corp. (CINF) $160.00 -3.81%

Microchip Technology Inc. (MCHP) $96.04 -3.55%

Nasdaq 100 - Risers

Dollar Tree Inc (DLTR) $113.00 19.43%

Illumina Inc. (ILMN) $158.70 9.36%

Align Technology Inc. (ALGN) $173.25 4.53%

Meta Platforms Inc. (META) $635.29 3.65%

Microsoft Corp. (MSFT) $426.99 3.64%

Workday, Inc. (WDAY) $130.01 3.20%

Cognizant Technology Solutions Corp. (CTSH) $53.85 3.08%

Vertex Pharmaceuticals Inc. (VRTX) $447.97 2.65%

Check Point Software Technologies Ltd. (CHKP) $131.33 2.44%

Henry Schein Inc. (HSIC) $76.32 2.37%

Nasdaq 100 - Fallers

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

Synopsys Inc. (SNPS) $480.64 -9.90%

KLA-Tencor Corp. (KLAC) $1,927.63 -4.57%

Ross Stores Inc. (ROST) $227.20 -3.97%

Microchip Technology Inc. (MCHP) $96.04 -3.55%

Texas Instruments Inc (TXN) $315.95 -3.39%

Intuitive Surgical Inc. (ISRG) $423.63 -3.17%

Lam Research Corp. (LRCX) $318.00 -3.05%

American Airlines Group (AAL) $14.65 -3.04%

eBay Inc. (EBAY) $112.13 -2.87%