The S&P 500 (^GSPC +0.17%) edged up 0.17% to 7,445.72 after choppy oil‑driven trading, the Nasdaq Composite (^IXIC +0.09%) added 0.09% to 26,293.10, and the Dow Jones Industrial Average (^DJI +0.55%) climbed 0.55% to 50,285.66, rebounding from early losses.
Market movers
Nvidia slipped from early strength despite yesterday’s blowout earnings. International Business Machines rallied over 12% on quantum computing developments.
Walmart dropped 7% following its Q1 results, while rival Costco Wholesale slipped 2%. Spotify Technology soared after it wowed investors with its growth plans.
What this means for investors
U.S. markets inched higher today, erasing early losses, as oil prices fell on reports of progress in U.S.-Iran negotiations. It is becoming a familiar story as traders watch for headway on reopening the Strait of Hormuz, which would be the first step toward normalizing oil supplies. However, until a deal is done, investors can expect further volatility.
Fears that elevated oil prices could fuel further inflation has lead to a surge in bond yields, and some argue this will start to pressure global equities. BCA Research, a Canadian investment analysis firm, think the outlook for stocks is weak right now, particularly because much of the recent rally was driven by a handful of artificial intelligence (AI) and semiconductor stocks.
Meanwhile, anticipation is growing about mega-IPOs from SpaceX and OpenAI. Some traders expect their market caps to top $1 trillion when they go public, raising concerns that they could take capital from other large-cap names.
Emma Newbery has positions in Nvidia and Spotify Technology. The Motley Fool has positions in and recommends Costco Wholesale, International Business Machines, Nvidia, Spotify Technology, and Walmart. The Motley Fool has a disclosure policy.
