Dow Hits Record High as Oil Swings and Earnings Fuel Choppy Trading Session

The stock market navigated another volatile session on Thursday as investors balanced a wave of corporate earnings, shifting geopolitical headlines, and sharp intraday moves in oil prices and Treasury yields. Despite early weakness and persistent volatility, the major averages managed to finish modestly higher by the close, with the Dow Jones Industrial Average securing another record closing high.

The S&P 500 added 0.2%, while the Nasdaq Composite edged up 0.1%. The Dow Jones Industrial Average gained 0.6%, supported by broader participation and strength across several cyclical sectors. Small caps outperformed, with the Russell 2000 climbing 0.9%, while the S&P Mid Cap 400 finished little changed.

Markets opened under pressure after a Reuters report indicated that Iran’s Supreme Leader insisted the country’s enriched uranium stockpile must remain inside Iran, reigniting fears that negotiations with the U.S. could stall. The headline sent crude oil prices and Treasury yields sharply higher in early trading and weighed broadly on equities.

However, sentiment improved later in the morning after conflicting reports cast doubt on the original statement. The market then turned decisively higher shortly after midday when regional media outlets reported that a final draft of a mediated peace agreement between the U.S. and Iran could be unveiled within hours.

That shift in tone triggered a reversal across financial markets. Crude oil futures ultimately settled down 2.0% at $96.28 per barrel after giving back their early gains, while Treasury yields also retreated from session highs.

The decline in oil prices helped broaden participation across equities, with eight of the eleven S&P 500 sectors finishing in positive territory.

The consumer discretionary sector rose 0.8%, led by several standout post-earnings performers. Ralph Lauren surged after delivering a strong quarterly earnings beat, while Williams-Sonoma also rallied sharply following upbeat results.

Lower oil prices additionally supported several rate-sensitive and fuel-sensitive areas of the market.

Meanwhile, the information technology sector managed a modest 0.3% gain despite weakness in NVIDIA following its highly anticipated earnings release.

NVIDIA once again delivered a massive beat-and-raise quarter, highlighted by explosive revenue growth and bullish forward guidance tied to continued AI demand. Still, shares moved lower as investors appeared reluctant to chase the stock higher after its enormous rally into earnings. The muted reaction reinforced the idea that expectations surrounding AI leaders remain extraordinarily elevated.

Even so, semiconductor stocks broadly held up well. The PHLX Semiconductor Index advanced 1.3%, outperforming the broader market despite choppy intraday trading.

Elsewhere in tech, IBM delivered one of the session’s strongest gains after announcing plans with the U.S. Department of Commerce to build America’s first purpose-built quantum foundry, backed by a proposed $1 billion CHIPS Act award. The announcement reignited investor enthusiasm around next-generation computing infrastructure and quantum technologies.

Defensive sectors also attracted interest during the market’s weaker morning stretch. The utilities sector gained 1.0% and remained steady throughout the session as investors sought stability amid the macro volatility.

Not every earnings report was well received, however. The consumer staples sector fell 1.6%, weighed down heavily by Walmart after the retailer issued disappointing near-term guidance despite delivering in-line earnings and solid revenue growth.

The energy sector also reversed sharply lower after leading early in the session, ultimately finishing down 1.0% as oil prices retreated from their highs.

Meanwhile, the industrials sector struggled after Deere & Company moved lower despite topping estimates and reaffirming its full-year outlook.

Overall, Thursday’s action reinforced how sensitive markets remain to shifts in the macro narrative, particularly developments tied to energy prices, Treasury yields, and geopolitical negotiations involving Iran. At the same time, continued strength across semiconductors and selective earnings winners helped maintain the market’s broader resilience.

Perhaps most notably, the market’s subdued response to another exceptional quarter from NVIDIA highlighted just how demanding investor expectations have become across the AI trade after months of extraordinary gains.

Our FTinvest 11 model portfolio gained 1.12% to close at 1,029.99, extending yesterday’s strong rebound and moving closer to its all-time high of 1,041.22. The portfolio has now recovered most of the losses from the recent correction, with momentum improving significantly over the past two sessions.

FTinvest 11 is now up approximately +10.97% year-to-date, returning to solid double-digit gains for 2026. The continued advance highlights the portfolio’s resilience and reinforces the strength of its disciplined, value-driven strategy amid improving market conditions.