US Equities Advance on Tech Earnings and Hopes for Iran-US Resolution
Crude oil prices slipped below $100 a barrel following reports that Iran is evaluating a US proposal to end the conflict, while technology sector earnings provided a lift to market sentiment.
US stock indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, edged higher on Thursday as investors reacted to a combination of positive corporate earnings and optimism regarding a potential peace agreement between the United States and Iran. The rally was underpinned by a significant drop in crude oil prices, which fell below the $100 a barrel mark as markets anticipated a US proposal to resolve the conflict and reopen the Strait of Hormuz.
While major benchmarks posted gains, individual company performances varied across different sectors. Shares in the cloud monitoring and security leader Datadog surged by more than 30 per cent after the company raised its full-year revenue outlook to between $4.3 billion and $4.34 billion for 2026. The firm reported earnings of $0.60 per share, beating estimates of $0.51, with CEO Oliver Pommel citing artificial intelligence as a new secular growth driver alongside digital transformation.
In contrast to the tech sector's strength, consumer earnings showed divergence. McDonald's beat first-quarter estimates as consumers sought value, pushing shares higher. Conversely, Papa John's missed analyst estimates on both revenue and profit, while Shake Shack reported a net loss. In the semiconductor space, Arm shares initially rose on upbeat revenue forecasts but subsequently sank in premarket trade due to concerns over a lack of chip supply.
Labor market data presented a mixed picture for the broader economy. The Challenger report indicated a 38 per cent jump in announced layoffs in April, with the technology sector identified as being hit hardest by AI-driven cuts. However, weekly initial jobless claims rose to 200,000, slightly higher than the previous week but below economist expectations of 205,000, setting the stage for the monthly jobs report due on Friday.
The decline in energy costs helped spur a rally in gold prices, with bullion trading around $4,690 an ounce as inflation worries eased. Brent crude futures dropped roughly 4.8 per cent to trade near $96 per barrel, while US WTI crude shed 5.2 per cent to around $90 per barrel. Meanwhile, SEC Chair Paul Atkins introduced a proposal allowing public companies to file a new Form 10-S every six months instead of the traditional quarterly Form 10-Q, though analysts have warned this could create market inefficiencies.
