Key facts
- The S&P 500 struggled for direction amid choppy trading as investors awaited Middle East peace deal developments.
- Chip stocks like Marvell, Qualcomm, and AMD gained, while Western Digital and Sandisk dropped.
- Software stocks including AppLovin and Datadog experienced significant declines after earnings reports.
- The Dow Jones Industrial Average was down 0.50%, the S&P 500 had slipped 0.06%, and the Nasdaq Composite showed a modest gain of 0.17%.
- Brent crude prices increased by 2.2% to over $81 per barrel.
- Treasury yields rose by over 5 basis points each.
Wall Street's major indices traded with mixed results on Thursday, with the S&P 500 struggling for direction amid choppy conditions as investors paused after a recent rally and awaited developments in the Middle East. Chip stocks showed resilience, largely trading higher and building on a rebound that had previously propelled the S&P 500 and the Dow Jones Industrial Average to record highs. This optimism in the semiconductor sector was fueled by strong earnings from tech leaders, which renewed confidence in artificial intelligence-driven demand. Despite the positive sentiment in chips, some companies experienced significant declines. Western Digital lost 9.6% and memory chip maker Sandisk dropped 3.5%, though both were trading off session lows. The software sector faced considerable pressure, with stocks like AppLovin plummeting 19.3% after missing revenue expectations, and Datadog falling 14.7% due to a forecast of slower revenue growth in the third quarter. By mid-morning, the Dow Jones Industrial Average was down 0.50%, the S&P 500 had slipped 0.06%, and the Nasdaq Composite showed a modest gain of 0.17%. In commodity markets, Brent crude prices increased by 2.2% to over $81 per barrel, influenced by ongoing discussions regarding a potential deal between Iran and the United States. This rise in oil prices contributed to an increase in 2-year and 5-year Treasury yields by over 5 basis points each, further constraining stock market gains.