U.S. equity markets extended their gains in late trading Thursday, pushing the Dow Jones Industrial Average to a fresh all-time high. The Dow closed up 276.31 points, or 0.55%, at 50,285.66, while the S&P 500 added 12.75 points, or 0.17%, to 7,445.72, and the Nasdaq Composite edged up 22.74 points, or 0.09%, to 26,293.10. The broad-based rally came as investors weighed a mix of corporate earnings, oil price movements, and geopolitical developments.
After-hours trading saw continued buying in major technology stocks, with Apple rising 0.28% to $305.84, Microsoft gaining 0.40% to $420.75, and Alphabet moving up 0.45% to $389.40. Nvidia also recovered slightly in extended trading, up 0.19% to $219.93, and Tesla added 0.18% to $418.59. The after-hours session, which runs from 4 p.m. to 8 p.m. ET, is typically less liquid, meaning small trades can have outsized price impacts.
Nvidia remained a focal point for traders after the company reported first-quarter revenue of $81.6 billion, an 85% increase year-over-year, with data center revenue surging 92% to $75.2 billion. The chipmaker forecast second-quarter sales of $91 billion, plus or minus 2%, and announced an additional $80 billion share buyback program. CEO Jensen Huang highlighted accelerating growth in what he called 'AI factories.' Despite the strong results, Nvidia shares slipped 1.8% in the regular session, while the Philadelphia Semiconductor Index rose 1.3%. Some analysts suggested that much of the positive news was already priced in, with concerns about rising competition from Intel and Advanced Micro Devices also weighing on the stock.
Oil prices remained a key driver of market sentiment, with U.S. crude settling near $96 per barrel. Traders monitored headlines from U.S.-Iran talks, as potential diplomatic resolutions could ease supply concerns, though ongoing questions about Iran's uranium supply kept uncertainty high. 'Oil and market sentiment is very sensitive to every headline,' said Marc Dizard, chief investment officer at Huntington Wealth Management. Jason Pride at Glenmede noted that valuations are 'partly driven by earnings,' as the reporting season winds down.
Inflation data and geopolitical risks remain top of mind for investors heading into the Memorial Day weekend. The Labor Department reported initial jobless claims fell to 209,000 for the week ended May 16, down from a revised 212,000, indicating a still-strong labor market. Meanwhile, a Purchasing Managers' Index reading for U.S. manufacturing hit a four-year high in May, signaling robust economic growth.
Retail stocks weighed on the regular session, with Walmart falling 7.3% after issuing a cautious outlook. CFO John David Rainey cited pressure on shoppers from higher fuel prices and warned of 'somewhat higher retail price inflation' if costs remain elevated. Consumer staples posted the biggest sector decline for the day.
While late-session buying provided a lift, analysts caution that the rally could prove fragile. If oil prices reverse course, U.S.-Iran talks break down, or inflation expectations spike again, expensive technology stocks may be the first to suffer. The sector's recent run-up leaves little room for disappointment, and after-hours gains have been slim, suggesting potential volatility when trading resumes on Friday.
