US Stock Market Today: S&P 500, NASDAQ Hold Near Records as Oil Prices Fall on Iran-US Talks

US stocks traded near record levels on Thursday as oil prices extended their decline. Investors watched signs of progress in talks between the United States and Iran, while fresh labor data showed continued strength in the job market.

The S&P 500 and NASDAQ stayed close to record highs, supported by lower crude prices, strong technology demand and steady economic data. However, some chip stocks slipped, and company earnings reports drove sharp moves in Snap, Whirlpool, and Datadog.

Oil Prices Fall as Markets Watch Iran-US Talks

Oil prices fell about 4% on Thursday as traders assessed reports of a possible temporary agreement between the United States and Iran. The potential deal could help restore normal crude flows through the Strait of Hormuz, a key route for global energy shipments.

Brent and US crude moved further away from the $100-a-barrel level after recent war-related supply concerns. The pullback gave investors some relief because higher energy prices can raise inflation pressure and affect company costs.

Iran was expected to respond to peace proposals as soon as Thursday. Reports said the talks could lead to a limited agreement to pause the conflict. Pakistan has also acted as a mediator, and a spokesperson for its Foreign Ministry said, “We expect an agreement sooner rather than later.”

Still, some investors remained cautious about the direction of talks. Robert Pavlik, senior portfolio manager at Dakota Wealth, said, “I’d be surprised if this conflict lasts. If it does, it’s because the Iranians want to keep it lasting. I think Trump wants to get this resolved.” His comment showed optimism, but it also pointed to uncertainty around Iran’s response.

S&P 500 and NASDAQ Hold Near Record Highs

At 09:40 a.m. ET, the Dow Jones Industrial Average rose 39.22 points, or 0.08%, to 49,949.81. The S&P 500 gained 5.43 points, or 0.07%, to 7,370.55, while the NASDAQ Composite added 79.70 points, or 0.31%, to 25,918.64.

The broader market remained firm after record closes for the S&P 500 and NASDAQ. Global stocks also moved to record peaks as investors welcomed softer oil prices and continued interest in artificial intelligence-related companies.

However, market strength was not broad across all sectors. Six of the 11 main S&P 500 sectors traded lower. Energy led the declines with a 2.1% drop as crude prices fell.

Market breadth showed a slight positive tone. Advancing stocks outnumbered decliners by a 1.07-to-1 ratio on the New York Stock Exchange and by a 1.09-to-1 ratio on the NASDAQ. The S&P 500 recorded 13 new 52-week highs and eight new lows, while the NASDAQ posted 73 new highs and 34 new lows.

Labor Data Keeps Fed Rate Bets Steady

New data showed that Americans filing for unemployment benefits rose less than expected last week. Low layoffs continued to support the labor market, even as investors prepared for Friday’s nonfarm payrolls report.

Economists in a Reuters poll expect the US economy to add 62,000 jobs in April. That would follow a rebound of 178,000 jobs in March. The report will give investors a clearer view of hiring trends and wage pressure.

A separate Challenger report showed that layoffs in April affected the technology sector the most. The report also said artificial intelligence was cited as a factor in some job cuts. Even so, weekly jobless claims remained cooler than expected.

Traders continued to expect the Federal Reserve to hold interest rates steady through the end of the year. That view marked a shift from earlier expectations for several rate cuts before the war raised concerns about energy prices and inflation.

Fed officials Neel Kashkari, Beth Hammack, and John Williams were scheduled to speak later in the day. Investors watched their comments for signals on inflation, labor strength, and the possible path of interest rates.

Datadog Lifts Cybersecurity Stocks as Snap and Whirlpool Fall

Technology and AI-related stocks have helped push US indexes higher in recent sessions. However, the rally cooled in some chip names on Thursday. Arm Holdings fell 6.9% after investors raised concerns about supply for its new AI chip, even though the company issued a strong earnings forecast.

Intel dropped 3.3%, while Advanced Micro Devices fell 2%. In contrast, Apple reached its first intraday record high since December after closing at a record level on Thursday. The Roundhill Magnificent Seven ETF also hit its first intraday record since October.

Cybersecurity stocks gained after Datadog raised its full-year earnings forecast. Datadog surged 30%, while CrowdStrike added 4.8% and Palo Alto Networks rose 6.4%.

Elsewhere, Snap fell 2.2% after the company said its first-quarter advertising revenue faced pressure from the Middle East conflict and slower growth in North America. Whirlpool slumped 13% after missing first-quarter sales estimates and suspending its dividend.

As investors continue to monitor Iran-US developments, upcoming Fed commentary, and key economic data, market sentiment is likely to remain closely tied to oil price movements, inflation expectations, and the strength of corporate earnings in the weeks ahead.

Also Read: Apple Weighs Intel, Samsung for US Chip Production Amid Supply Strain