US stocks fell on Thursday as investors grappled with ongoing geopolitical tensions, high oil prices, and uncertainty surrounding inflation and interest rates. The S&P 500 fell roughly 0.3%, while the Nasdaq Composite slipped 0.4% as traders digested Nvidia’s earnings report alongside mounting concerns that a prolonged conflict involving Iran could further pressure energy markets and global inflation.
The Dow Jones Industrial Average also edged lower after briefly moving into positive territory earlier in the session. Markets remained volatile as Treasury prices rose and yields eased slightly after President Trump signaled the US was prepared to strike Iran if negotiations fail, though he indicated he was willing to delay military action temporarily while diplomatic discussions continue. Investors also continued monitoring corporate earnings and labor market data for clues on the health of the broader economy.
Market Movers:
- Infleqtion (INFQ) +33% — Quantum computing stocks surged after reports indicated the Trump administration plans to award roughly $2 billion in grants to companies tied to the sector. The funding initiative, which may also include government equity stakes, boosted optimism across the quantum computing space and lifted shares of several related companies.
- Applied Digital (APLD) +19% — Shares soared after the company announced a massive 15-year AI infrastructure lease agreement tied to its Polaris Forge 3 campus. Applied Digital said the deal could generate as much as $18.2 billion in revenue and significantly expand its pipeline of hyperscaler-backed AI data center projects.
- Nebius (NBIS) +16% — The AI infrastructure company rallied after unveiling a long-term fuel cell agreement with Bloom Energy valued at up to $2.6 billion in service fees. The deal is expected to support large-scale power capacity for Nebius’ growing AI operations over the next decade.
- e.l.f. Beauty (ELF) +3% — Shares climbed after the cosmetics company reported stronger-than-expected quarterly results driven by strong sales growth at its Rhode and Naturium brands. Despite issuing cautious guidance tied to fuel costs and consumer softness, investors welcomed the company’s continued market share gains and revenue growth.
- Intuit (INTU) -20% — Shares plunged even after the company beat earnings expectations and raised full-year guidance, as investors focused on its announcement that it will cut roughly 17% of its workforce. Concerns also emerged about whether AI-driven changes could disrupt portions of Intuit’s business model despite management downplaying those fears.
- Deere & Co. (DE) -7% — The equipment maker fell sharply after investors zeroed in on weakness in its core agriculture business despite stronger-than-expected earnings. Revenue in Deere’s Production and Precision Agriculture division declined 14%, while operating profit in the segment plunged nearly 40%.
- Walmart (WMT) -7% — Shares sank after the retail giant issued softer-than-expected earnings guidance and warned that elevated fuel prices continue pressuring US consumers. While comparable sales and e-commerce growth remained strong, investors worried that higher transportation and energy costs could weigh on future margins.
- Nanobiotix (NBTX) -4% — The biotech company declined after announcing a roughly $87 million global follow-on offering. Investors reacted negatively to the potential dilution as the company seeks additional funding for the development of its oncology and nanotechnology platforms.
Nvidia Earnings Reinforce AI Demand Narrative
One of the biggest focal points was Nvidia’s latest earnings report, which largely exceeded Wall Street expectations and reinforced the strength of the ongoing artificial intelligence boom. The company delivered strong revenue growth and upbeat guidance for chip sales, though some investors had hoped for even more aggressive projections following the stock’s enormous run over the past two years.
Markets also focused on commentary from Nvidia CFO Colette Kress, who said the company expects to generate roughly $20 billion this year from standalone CPU and CPU server sales, including systems tied to its Grace Blackwell and Vera Rubin architectures. Nvidia continues pushing deeper into the broader data center and server infrastructure market as hyperscalers ramp up spending on AI systems.
Oil Prices Surge as Iran Talks Face New Obstacles
Energy markets remained a major source of anxiety for investors after oil prices spiked following reports that Iran’s supreme leader issued a directive preventing the country’s enriched uranium stockpile from leaving Iran. The development complicated ongoing negotiations between Tehran and Washington and raised fears that diplomatic efforts could stall.
Brent crude briefly surged above $108 per barrel, while West Texas Intermediate crude topped $102 before paring gains later in the session. Markets remain highly sensitive to any developments involving the Strait of Hormuz and Iranian oil production, given the potential impact on global inflation and energy supplies. Rising oil prices have become one of Wall Street’s biggest concerns in recent weeks, as higher fuel costs threaten to intensify inflation pressures just as investors were hoping price growth might begin moderating later this year.
Treasury Yields and Mortgage Rates Stay in Focus
Although Treasury yields eased slightly, borrowing costs remain high across the economy. Mortgage rates climbed above 6.5% this week as bond markets continue reacting to inflation risks and shifting expectations for Federal Reserve policy.
Higher yields have created renewed pressure on both consumers and growth-oriented sectors of the market, particularly technology stocks. Investors are increasingly debating whether the Federal Reserve may need to keep rates higher for longer if energy-driven inflation persists through the second half of the year. Meanwhile, fresh labor market data showed initial jobless claims rose modestly to 209,000, signaling that the US labor market remains relatively resilient despite broader macroeconomic uncertainty.
Looking Ahead
Markets now face a mix of geopolitical risk, inflation uncertainty, and shifting expectations around AI growth. Investors will continue following developments involving Iran closely, as any further escalation could push oil prices even higher and reignite fears of sustained inflationary pressure. At the same time, Wall Street will be watching whether Nvidia’s strong earnings can continue supporting enthusiasm across the AI sector and broader technology market. Treasury yields, energy prices, and upcoming economic data are also likely to remain major drivers of market sentiment as investors search for clarity on the Federal Reserve’s next moves heading into the summer.
