The Dow Jones Industrial Average fell almost 400 points on Thursday, while the Nasdaq Composite narrowly avoided a decline. Weak market breadth, sharp post-earnings losses in software and data-storage stocks, and a renewed rise in oil prices shaped a cautious session ahead of Friday’s US employment report.
US indices finish mixed
Wall Street ended Thursday’s session without a clear common direction as investors reduced risk after several major indices reached record territory earlier in the week.
The Dow Jones Industrial Average lost 387.67 points, or 0.71%, to close at 53,961.45. The S&P 500 slipped 5.72 points, or 0.07%, to 7,718.05, while the Nasdaq Composite gained 11.48 points, or 0.04%, to finish at 26,374.92.
The modest changes in the S&P 500 and Nasdaq concealed considerably weaker conditions beneath the surface. Declining stocks outnumbered advancing shares by approximately 1.46 to one on the New York Stock Exchange and 1.35 to one on the Nasdaq, according to Reuters.
The S&P 500 nevertheless registered 29 new 52-week highs against only four new lows. The Nasdaq recorded 119 new highs and 63 new lows, illustrating the increasingly selective nature of the market.
Dow snaps back from record territory
Thursday’s retreat marked a reversal for the Dow after the blue-chip index had posted three consecutive record closing highs.
The decline was not the result of a broad collapse across all large-cap stocks. Instead, weakness in several influential components and continued rotation away from recent winners weighed disproportionately on the price-weighted index.
The S&P 500 spent much of the session close to unchanged, while the Nasdaq recovered from earlier pressure as selected semiconductor shares attracted buyers. That rebound was not enough to offset pronounced losses across software, digital advertising and data-storage companies.
The closing pattern therefore differed from Wednesday’s session. The previous day was characterised by Dow outperformance and a clear Nasdaq decline; on Thursday, technology was divided between recovering semiconductor names and sharply falling software companies.
AppLovin and Datadog lead software sell-off
Corporate earnings remained the principal source of stock-specific volatility.
AppLovin fell by approximately 19% after its quarterly revenue missed Wall Street expectations. The marketing technology company was also hit by concerns that growth in its mobile-gaming advertising business could be losing momentum.
Datadog dropped around 19% after the cloud-monitoring company warned that revenue growth was likely to slow during the third quarter. The stock had risen strongly before the announcement, making its guidance especially vulnerable to investor disappointment.
Together, AppLovin and Datadog were among the largest negative contributors to the S&P 500.
Elsewhere, Western Digital declined by roughly 12%, despite reporting results that exceeded some market expectations. Investors focused instead on the company’s outlook and took profits following an exceptional advance earlier in 2026.
Sandisk lost approximately 5%, although the stock remained substantially higher for the year. The contrasting performance of memory-related companies and selected semiconductor suppliers showed that investors were no longer rewarding the entire chip industry uniformly.
Selected winners buck the cautious market
Several stocks still recorded substantial gains.
Insmed surged by more than 30%, placing the biotechnology company among the session’s strongest large-cap performers.
Semiconductor timing specialist SiTime advanced by more than 20% after reporting a sharp increase in quarterly earnings. The result helped semiconductor shares recover from their early losses and allowed the Nasdaq to finish marginally higher.
Among S&P 500 companies, Albemarle gained close to 7%, while Leidos rose almost 6%. Energy shares including APA, Occidental Petroleum and SLB also advanced as crude prices rebounded.
Uber gained more than 4%, while Ralph Lauren, Fox and Allstate were among the other notable winners.
SpaceX reverses early losses on exceptional volume
SpaceX delivered one of the session’s most closely watched reversals.
The shares initially fell as the expiry of a lock-up period made hundreds of millions of previously restricted shares eligible for sale. The potential increase in available supply had raised concerns that early investors and employees could take profits.
Those fears did not trigger the sustained sell-off some traders had anticipated. SpaceX erased its early decline and finished higher, while ranking among the most actively traded US stocks. More than 200 million shares changed hands during the session, according to Stock Analysis.
The late recovery suggested that demand from institutional and retail investors was sufficient to absorb at least part of the additional supply. It also represented a notable change from Wednesday, when concerns about spending and capital requirements had weighed heavily on the stock.
Nvidia, Intel, Micron Technology, AMD, Sandisk and Palantir were also among the most actively traded major US companies.
Oil rebound supports energy stocks
Oil prices moved sharply higher as investors reassessed geopolitical developments surrounding Iran and the Strait of Hormuz.
US crude rose by approximately 2.8% to around $77.29 per barrel, while Brent crude gained roughly 3.7% to $82.35. Reports that an Iranian parliamentary committee was considering restrictions on vessels belonging to countries classified as hostile renewed concerns about the security of the crucial shipping route.
The move helped energy producers and oilfield-services companies outperform the broader market. It also complicated the outlook for inflation: earlier declines in crude had eased concerns about further monetary tightening, but a sustained rebound could restore some upward pressure on consumer prices.
Labour market takes centre stage
Thursday’s economic releases did not produce a major index-level reaction.
Initial applications for US unemployment benefits increased slightly to 199,000, from a revised 198,000 in the preceding week. Claims remained historically low, suggesting that companies were not yet engaging in widespread layoffs.
Second-quarter nonfarm business productivity rose at an annualised rate of 1.4%, exceeding expectations, while unit labour costs increased by a more moderate 1.3%. Improving productivity could allow the economy to continue expanding without creating the same degree of wage-related inflation pressure.
Investors were nevertheless reluctant to establish large positions before Friday’s nonfarm-payroll report. The employment figures will be examined for evidence that the labour market is either reaccelerating or losing momentum, with both outcomes capable of changing expectations for the Federal Reserve’s next decisions.
What investors should watch on Friday
Friday’s jobs report is likely to determine whether Thursday’s session was simply a pause near record levels or the beginning of a broader consolidation.
A significantly stronger-than-expected employment number could push Treasury yields higher and revive fears that interest rates will remain elevated. That scenario would be particularly challenging for expensive growth and software stocks.
A moderate report could prove more favourable by confirming that the economy remains resilient without forcing the Federal Reserve to adopt a more restrictive position.
For now, the closing figures indicate caution rather than panic. The Dow gave back part of its record-setting advance, the S&P 500 remained close to unchanged and the Nasdaq survived heavy losses in several prominent growth companies. However, negative breadth and extreme post-earnings moves show that the market’s tolerance for disappointing guidance is becoming increasingly limited.
Sources
- Reuters — S&P 500 little changed as investors eye Mideast talks
Clôture des indices, breadth du marché, nouveaux plus-hauts/bas, AppLovin, Datadog, Western Digital, Sandisk, SpaceX, pétrole et inscriptions au chômage. - Investor’s Business Daily — Stock Market Today
Évolution intraday, valeurs technologiques, SiTime, Sandisk, Western Digital et principaux mouvements après résultats. - Edward Jones — Daily Market Recap
Inscriptions au chômage, productivité américaine, coûts salariaux unitaires, rendements obligataires et contexte précédant le rapport sur l’emploi. - Stock Analysis — Most Active Stocks
Valeurs les plus actives et volumes, notamment SpaceX. - Morningstar — Market Movers
Principaux gagnants et perdants, dont Insmed. - Business Insider Markets — S&P 500 Movers
Performances d’Albemarle, Leidos, APA, Uber, Ralph Lauren, Occidental Petroleum, SLB, AppLovin, Datadog et Western Digital.
