U.S. stocks traded higher on Thursday as Wall Street looked past another round of U.S. strikes against Iran and focused instead on cooling oil prices, resilient economic data, and the next wave of corporate catalysts. The rebound follows several sessions of AI-driven volatility, with investors showing a renewed appetite for risk despite ongoing geopolitical uncertainty.
The Dow Jones Industrial Average gained roughly 0.6%, while the S&P 500 advanced 0.3% and the Nasdaq Composite added more than 0.5%. Stocks found support as crude oil retreated from overnight highs after the latest military action concluded quickly, easing immediate fears of a broader disruption to global energy supplies.
Market Movers:
- Enliven Therapeutics (ELVN) +17%: Shares surged after the biotech company released encouraging updated Phase 1 data for its leukemia treatment ELVN-001, with higher response rates and a favorable safety profile. Investors were also encouraged after the FDA aligned with the company's proposed dose selection for its upcoming Phase 3 trial, providing a clearer regulatory pathway.
- Navan (NAVN) +12%: The travel and expense management platform rallied after posting first-quarter earnings that topped expectations and raising its full-year outlook. Strong revenue growth and improving profitability reinforced confidence that enterprise travel spending remains healthy despite broader economic concerns.
- Intel (INTC) +9%: Shares jumped after Bank of America upgraded the chipmaker to Buy and significantly increased its price target. The firm cited growing confidence in Intel's foundry business, advanced packaging capabilities, and long-term opportunity to benefit from expanding AI infrastructure demand.
- Humacyte (HUMA) -23%: The biotechnology company plunged after announcing a large underwritten public offering that will significantly increase its share count. While the financing strengthens its balance sheet, investors reacted negatively to the potential dilution.
- PureCycle Technologies (PCT) -17%: Shares fell after the recycling technology company unveiled nearly $400 million in combined debt and equity financing. The sizeable capital raise overshadowed the company's long-term growth strategy as investors priced in dilution and additional leverage.
- Dana (DAN) -16%: The automotive supplier declined sharply after announcing a merger with Eaton's Mobility business. Although management highlighted strategic benefits and scale advantages, investors appeared cautious about ownership structure and integration risks.
- Oracle (ORCL) -12%: Shares dropped despite delivering better-than-expected quarterly results and strong guidance. Investors focused on weaker legacy software trends and the company's ambitious capital spending plans to fund AI data center expansion, which include a substantial financing package.
Inflation and Labor Data Keep Fed Outlook in Focus
Fresh economic data painted a mixed picture for investors. Producer prices rose in May, reinforcing concerns that inflationary pressures remain high after Wednesday's hotter-than-expected consumer inflation report. Meanwhile, initial jobless claims climbed to 229,000 and continuing claims also moved higher, suggesting the labor market may be gradually cooling even as inflation remains stubbornly above the Federal Reserve's target. The combination continues to complicate expectations for future interest rate policy.
Geopolitical Risks Continue to Drive Energy Markets
Markets briefly rallied after the latest U.S. strikes against Iran appeared limited in scope, allowing oil prices to retreat from overnight spikes. However, optimism faded somewhat after President Trump indicated additional military action could follow, renewing concerns about a prolonged conflict and potential disruptions to global energy supplies. Despite the uncertainty, investors have largely viewed recent market pullbacks as buying opportunities, with hopes that any escalation will remain contained and avoid broader economic fallout.
SpaceX IPO and AI Spending Remain Major Catalysts
Attention is increasingly turning toward Friday's anticipated SpaceX market debut, which is expected to become the largest IPO in history. The offering could provide another major test of investor appetite for high-growth technology companies following months of AI-driven enthusiasm. At the same time, Oracle's earnings reinforced that cloud providers continue to sign enormous AI contracts, even as companies commit billions of dollars toward expanding infrastructure. Investors remain focused on whether those investments can continue supporting the sector's elevated valuations.
Looking Ahead
Markets are heading into the end of the week with investors balancing strong corporate AI spending against persistent inflation and geopolitical uncertainty. Friday's SpaceX IPO, continued developments in the Middle East, and any further signals on interest rates could all shape market direction. While volatility remains elevated, Wall Street continues to show a willingness to buy quality growth names whenever broader macro fears temporarily pressure sentiment.
