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The S&P 500 rose Thursday as investors tracked a report that negotiators had reached a deal to extend the Iran ceasefire. However, traders remained cautious as the White House pushed back on claims of a draft agreement, while oil prices moved higher again.
The broader index gained 0.3%, while the NASDAQ Composite added 0.2%. Both indexes touched fresh all-time highs during the session. The Dow Jones Industrial Average slipped 59 points and stayed near the flatline as investors weighed inflation data, company earnings, and new developments in the Middle East.
Stocks reached session highs after Axios reported that US and Iranian negotiators had agreed on a 60-day memorandum of understanding to extend the ceasefire. The report, citing two US officials and a regional source, also said further talks on Iran’s nuclear program would continue.
However, the report also noted that President Donald Trump had not given final approval. That detail kept traders cautious. The White House later denied a related report about a memorandum of understanding and called it ‘a complete fabrication.’
Oil prices moved lower from earlier highs after the ceasefire report, though they remained elevated. West Texas Intermediate crude traded above $89 a barrel, while Brent crude stayed near $95 a barrel.
Energy markets stayed volatile after Iran’s Revolutionary Guard said it had targeted a US airbase. The statement followed fresh US strikes against an Iranian military site, adding pressure to a ceasefire that already appeared fragile.
US Central Command also said Kuwait intercepted missiles launched by Iran late Wednesday. The latest military activity renewed concern over shipping near the Persian Gulf and the Strait of Hormuz.
Earlier, oil prices had eased after Secretary of State Marco Rubio said the US preferred ‘the negotiated diplomatic route’ and would give talks ‘every chance to succeed.’ However, Trump also said he would not allow Iran to control the Strait of Hormuz as part of any deal.
Iranian state television had reported that Tehran was committed to restoring commercial traffic through the Strait of Hormuz to prewar levels within one month of an agreement. Reuters reported those comments, though the White House rejected the claim.
Markets also reacted to the April personal consumption expenditures price index. The Commerce Department said the index rose 0.4% for the month, while the annual inflation rate reached 3.8%.
Economists polled by Dow Jones had expected a monthly increase of 0.5% and a yearly rate of 3.8%. The softer monthly reading gave investors some relief, though inflation stayed above the Federal Reserve’s 2% target.
Treasury yields edged higher during parts of the session as investors tracked inflation and oil prices. The 10-year Treasury yield traded near 4.48%, approximately in line with its level late Wednesday.
Higher energy prices remain a key concern for inflation. However, the latest PCE reading was not stronger than expected, which helped limit pressure on equities during the morning session.
Snowflake shares surged about 35% after the cloud data platform company reported stronger-than-expected quarterly results. The company also gave upbeat guidance for its fiscal second quarter.
Snowflake announced a five-year plan to spend $6 billion on Amazon Web Services. The deal includes AI infrastructure and access to Amazon’s custom chips, according to company updates.
Other earnings movers also supported market sentiment. Dollar Tree climbed after lifting its full-year profit forecast. Best Buy gained after issuing a stronger second-quarter sales outlook.
Kohl’s also advanced after reporting quarterly sales in line with expectations and keeping its annual targets. Meanwhile, Hormel Foods gained after stronger results from Jennie-O ground turkey and Spam exports.
Despite Snowflake’s rally, the broader tech sector showed mixed movement. Salesforce fell after its earnings report, even though the company beat profit expectations for the latest quarter.
NVIDIA and Tesla also moved lower as investors assessed whether recent AI-linked gains could continue. The NASDAQ stayed near record territory, but weakness in some large technology names limited the index’s advance.
Airline and travel stocks also came under pressure as crude prices rose. American Airlines, JetBlue, Southwest Airlines, Delta Air Lines, and Norwegian Cruise Line traded lower as fuel-cost concerns returned.
At midmorning, market breadth remained weak. Declining shares outnumbered advancing stocks on both the NYSE and NASDAQ, showing that gains remained concentrated in select earnings and technology names.
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