U.S. stock markets closed at record levels on Thursday, propelled by robust quarterly results from major technology companies. The S&P 500 rose 1.02% and the Nasdaq 100 gained 0.98%, both hitting new all-time highs. The Dow Jones Industrial Average also advanced 1.62%, its strongest close in a week. Alphabet Inc. (GOOGL) surged over 9% after reporting first-quarter revenue of $94.57 billion, exceeding analyst expectations. Qualcomm Inc. (QCOM) jumped 15%, lifting the semiconductor sector with its solid fiscal second-quarter revenue. These gains helped offset losses in other mega-cap stocks, as Meta Platforms Inc. (META) fell 8% on raised capital expenditure forecasts and Microsoft Corp. (MSFT) dropped 3% despite beating third-quarter earnings, amid ongoing concerns about Azure cloud growth. Lower crude oil prices eased inflation worries, pushing the 10-year Treasury yield down 5 basis points to 4.38%. Mixed U.S. economic data—strong labor market signals but weaker-than-expected GDP growth—also influenced investor sentiment.
Commodities: Coffee, Oil, and Soybeans in Focus
In the commodities markets, coffee prices dropped to one-week lows, driven by expectations of a larger 2026/27 Brazilian crop. Analysts project Brazil's harvest could reach 75.9 million bags, a 15.5% increase year-over-year, raising concerns about a global coffee surplus expanding to 10 million bags. Vietnamese coffee exports also surged, with a 14% rise in early 2026 shipments, pressuring robusta coffee prices. However, supply tightness in arabica coffee, marked by a two-month low in ICE inventories, provided some support. Geopolitical risks, such as the US-Iran conflict and reduced Brazilian exports, add upward pressure on costs. The USDA forecasts a 2% rise in global coffee output to a record 178.8 million bags, with robusta production climbing 10.9% but arabica declining 4.7%, highlighting shifting market dynamics.
Crude oil prices fell sharply, with June WTI crude oil closing down 1.69%, despite early gains from Middle East tensions. Gasoline prices surged to a 3.75-year high. Concerns over weaker global energy demand emerged after U.S. and Eurozone first-quarter GDP growth data came in below expectations. The U.S. GDP rose 2.0% annualized (below the 2.3% forecast), while Eurozone GDP barely increased, signaling potential slowdowns in major economies.
Soybeans closed mixed on Thursday, with old crop contracts slightly down and new crops gaining. The national average cash bean price declined 2.25 cents to $11.23. Soymeal futures fell 10 cents, while soy oil futures rose by 105 points. The USDA's weekly export sales report showed the second-lowest volume for the 2025/26 marketing year at 258,066 metric tons, down 30.47% year-over-year. China led buying with 199,200 MT, followed by Egypt and Indonesia. New crop sales were notably low. The Energy Information Administration noted that soybean oil use in biodiesel reached a seven-month high in February, accounting for 44.34% of total feedstock.
Wheat and Cotton: Export Data and Weather Drive Moves
Wheat futures fell sharply, with Chicago SRW down 15 to 18 1/4 cents and Kansas City HRW off by 5 to 13 cents at midday. Deliveries surged, including 400 on Chicago and 578 on Kansas City contracts, mostly by Bunge. Export sales data exceeded expectations, with old crop wheat sales at 226,096 MT (a five-week high) and new crop sales at 156,715 MT (the largest in four weeks), supporting export demand. Dry weather persists across much of the U.S., particularly in the Central and Northern Plains, threatening crop conditions. On the global front, Russian wheat export forecasts were raised for 2025/26 and 2026/27, while the European Commission upgraded EU wheat production estimates. France reported declines in soft and durum wheat conditions. May CBOT futures settled at $6.24, down 18 1/4 cents.
Cotton futures surged by the full 3-cent daily limit on Thursday, with July contracts jumping 300 points and May up 552 points amid a weaker U.S. dollar and falling crude oil prices. The USDA reported robust export sales of 162,879 running bales (RB) for the 2025/26 season, marking a three-week high and a 56.61% increase over last year. New crop sales also hit the fourth-largest total for 2026/27 with 105,747 RB. Shipments reached a five-week peak at 384,608 RB. ICE certified cotton stocks remained steady at 165,681 bales, while the Cotlook A Index held firm at 89.55 cents per pound. The Adjusted World Price rose 365 points to 65.26 cents.
Market Outlook
The overall market environment remains mixed, with strong corporate earnings supporting equities, while commodity markets face headwinds from supply shifts and demand concerns. Investors will continue to monitor economic data, geopolitical developments, and company reports for further direction. The record highs in the S&P 500 and Nasdaq reflect optimism about technology sector growth, but caution persists amid slowing global economic momentum.
