The S&P 500 ended relatively flat on Thursday on Wall Street, as oil prices and government bond yields remained volatile, with investors holding out hope for a resolution to the conflict in the Middle East.
The Dow Jones rose 0.55% to close at 50,256.66 points, the Nasdaq edged up 0.9% to finish at 26,293.098 points, and the S&P 500 gained 0.17% to close at 7,445.72 points.
West Texas Intermediate futures settled slightly lower at around $98 per barrel, while Brent crude also dipped modestly to around $104 per barrel.
Oil prices had initially climbed after Reuters, citing sources, reported that Iran’s Supreme Leader had issued an order for enriched uranium to remain inside the country, further complicating the prospects for a resolution to the US-Iran conflict.
That initial oil price surge was followed by a move higher in government bond yields, as traders feared a pickup in inflation. However, the benchmark 10-year Treasury yield ultimately edged up just over 1 basis point to 4.582%, while the 30-year yield fell less than 1 basis point to 5.107%.
It is worth noting that stocks had rallied on Wednesday, snapping a three-day losing streak for the S&P 500, as oil prices and bond yields retreated. Investor sentiment received a boost after President Donald Trump stated that the administration was in the “final stages” of negotiations with Iran.
“If inflation picks up because oil stays at $100 or above, which could happen, there may be some short-term concerns around that, and you’ll hear about a lot of risks,” said Robert Conzo, CEO of The Wealth Alliance. However, he noted that the current level of the Cboe Volatility Index, at around 17, signals that investors “feel pretty comfortable,” given the continued expansion of artificial intelligence, strong corporate earnings, and low unemployment. “All eyes on a deal,” he said.
On Thursday, traders were also digesting Nvidia’s latest earnings report. The chipmaker beat Wall Street’s expectations on both earnings and guidance, and announced an increase in its quarterly cash dividend to 25 cents per share. Still, investors have come to expect Nvidia to consistently top estimates and raise its outlook, riding the wave of AI-driven demand.
Nvidia shares fell nearly 1%. “People are saying, ‘we expected more,'” said Conzo. “They just want more to the point where more becomes unrealistic.”
