4:15pm: Markets pause after rally
US stocks eased back from record levels on Thursday as investors took a breather following the previous session’s strong rally, with gains in energy and a continued pullback in high-flying tech names leaving the major indexes slightly lower by the close.
The Dow Jones Industrial Average fell 314 points, or 0.6%, to 49,597. The S&P 500 slipped 28 points, or 0.4%, to 7,337, while the Nasdaq edged down 33 points, or 0.1%, to 25,806.
Despite the softer tone, all three benchmarks remained within striking distance of recent highs, with sentiment still broadly supported by expectations of easing geopolitical tensions after reports of possible diplomatic progress between the US and Iran. That optimism helped cushion early losses, even as momentum cooled through the session.
Energy stocks outperformed on the back of higher oil prices, while the AI-related trade took a brief pause, weighing on parts of the tech sector.
Looking ahead, attention turns to earnings after the close from names including Airbnb, Coinbase, CoreWeave, Cloudflare, and Block, as well as Friday’s April jobs report, which is expected to be a key test for the market’s rate-cut outlook and broader economic resilience.
3:45pm: Proactive news headlines
- Fineqia International Inc (CSE:FNQ) said global digital asset exchange-traded products rebounded in April, with total assets under management rising 11.5% to $136.4 billion in the sector’s first meaningful recovery month of 2026 following a sharp first-quarter sell-off.
- Virtuix Holdings Inc (NASDAQ:VTIX) said it was selected as the lead integrator for a virtual reality infantry training system for the U.S. Marine Corps while also pursuing acquisitions to expand its defense business.
- M2i Global Inc (OTC:MTWO) is set to become a wholly owned subsidiary of Volato Group after shareholders overwhelmingly approved the companies’ proposed merger.
- Ocean Power Technologies Inc (NYSE-A:OPTT) announced progress in autonomous maritime operations, including a successful demonstration of docking and charging capabilities for its WAM-V autonomous surface vehicle without human intervention.
- Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF, FRA:9SU0) said it is finalizing plans for a 2026 drill program at its Davidson River uranium project in Saskatchewan’s Athabasca Basin, targeting high-grade uranium mineralization across several key conductor corridors.
2:40pm: Market movers
- Arm Holdings PLC (NASDAQ:ARM) reported fiscal fourth-quarter and June-quarter results that were largely in line with expectations, but its shares fell more than 11% as investors questioned whether near-term execution can justify the stock’s AI-driven valuation.
- Shake Shack (NYSE:SHAK) posted first-quarter earnings and revenue that missed Wall Street estimates, sending its shares down nearly 28% after reporting break-even adjusted earnings per share versus expectations for a profit.
- Whirlpool Corporation (NYSE:WHR) reported a first-quarter loss, missed revenue and earnings estimates, and cut its full-year outlook as worsening macroeconomic conditions tied to the Iran war pressured demand and margins.
- Fortinet Inc (NASDAQ:FTNT) posted stronger-than-expected first-quarter results, with revenue rising 20% year over year, driving its shares more than 21% higher in Thursday trading.
- Unity Software Inc (NYSE:U) beat first-quarter revenue expectations and posted a sharp rise in adjusted earnings despite recording a $279 million impairment charge tied to the shutdown of its ironSource ad network and sale of its Supersonic publishing unit.
- Tapestry Inc (NYSE:TPR) topped Wall Street estimates for fiscal third-quarter earnings and revenue and raised its full-year outlook on strong performance across its luxury fashion brands.
- Virtuix Holdings Inc (NASDAQ:VTIX) said it was selected as the lead integrator for a virtual reality infantry training system for the U.S. Marine Corps while also pursuing acquisitions to expand its defense business.
- M2i Global Inc (OTC:MTWO) is set to become a wholly owned subsidiary of Volato Group after shareholders overwhelmingly approved the companies’ proposed merger.
- AppLovin Corp (NASDAQ:APP) reported first-quarter revenue that beat analyst expectations and raised its current-quarter outlook, supported by continued growth in its AI-powered advertising business.
1:40pm: Just one headline away
Stocks are slipping as investors await news of a confirmed peace pact between the US and Iran, which hasn't happened by early afternoon.
"We had peace proposals and market rallies over the course of the past weeks, and all of them ended in disappointment," noted Ipek Ozkardeskaya, senior analyst at Swissquote.
"Given the chaotic diplomacy, and given how the US lost control of the situation — and given the earlier unfounded announcements of progress — I would like to say: ‘I will clap when Iran confirms.’ Because the longer this drags on, the greater the risk of oil shortages and sharper spikes in oil prices. And a 180-degree turn in the situation is just one headline away."
12:25pm: Jobless claims stay low
US initial jobless claims rose to 200,000, slightly below expectations for 205,000, as the labor market continued to show resilience despite a wave of recent corporate layoff announcements.
Applications for unemployment benefits edged higher after falling the previous week to near multi-decade lows, signaling layoffs remain limited.
The four-week moving average held at a low 203,250, while continuing claims declined, reinforcing expectations that the Federal Reserve could keep interest rates unchanged into next year as labor market conditions remain stable.
11:10am: Arm disappoints
Arm Holdings shares fell more than 8% Thursday after the chip designer's latest earnings failed to impress investors despite strong data center growth.
While revenue came in roughly in line with expectations and data center sales more than doubled year-over-year, management held its near-term outlook unchanged even as demand for its AI-focused AGI CPUs surged.
Bank of America flagged the disconnect, noting supply constraints are capping upside and calling the company's target of 15% AGI CPU market share by 2031 aggressive.
The bank maintained a Neutral rating, saying the AI opportunity appears largely priced into the stock.
10am: Dow opens flat, Nasdaq inches higher
It's a circumspect start in New York, with the Dow Jones opening just below flat, the S&P 500 just above, while the Nasdaq climbed 0.35%.
On the S&P, top fallers were Zoetis, down 19% as the animal health company missed Q1 targets.
Top risers was Carvana, up 413%, but that is a mirage as it is as it executes a 5-for-1 forward stock split.
Datadog sprinted 31% higher to top the S&P and Nasdaq 100 after surprising with both its quarterly results and forecasts. The company said AI has been driving rather than cannibalising demand for its platform, as customers need monitoring and security for their cloud and AI deployments.
Cybersecurity outfit Fortinet was next, jumping 23% as it reported strong beats in revenue and earnings and lifted its full-year outlook.
8am: Modest start for stocs expected
US stocks are tipped to open modestly positively on Thursday as markets await a response from Tehran to Washington's proposed peace plan.
Dow Jones futures were up 0.1% while S&P 500 and Nasdaq 100 futures hovered just above flat, paring earlier pre-market gains.
The muted tone follows a strong session on Wall Street, where tech stocks led the charge. The Nasdaq rose 2% to 25,839 and the S&P 500 gained 1.5% to close at 7,365, both closing at fresh record highs, while the Dow added 612 points, or 1.2%, to finish at 49,911.
The rally was driven by easing geopolitical tensions as President Trump paused the Strait of Hormuz tanker escort mission to allow space for talks with Iran, while reports suggested a deal to end the conflict could be close.
Later in the day, Trump said there had been “very good talks” over the past 24 hours and that an agreement was “very possible”, though he warned military action would resume if negotiations fail.
Both sides were said to be near agreement on a one-page memorandum, Reuters reported, though Iranian media said the proposal contains “unacceptable” elements.
With Iran expected to give its response to a US proposal to end the war later today, per a report from CNN, or at least by the weekend, markets are holding their breath.
Markets in Asia played catch-up in their Thursday session, with major indices up 2-3%, while Europe is softer, with the FTSE 100 down 0.55% and the DAX off 0.2%.
Attention now turns to a busy earnings slate, with pre-market updates from Shell, McDonald’s, Canadian Natural Resources and Howmet Aerospace, while Gilead, McKesson, Airbnb and Cloudflare report after the close.