Stocks Settle Higher on Strong Tech Earnings and Economic Resilience

The S&P 500 Index ($SPX) (SPY) on Thursday closed up +0.77%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.75%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.73%.  June E-mini S&P futures (ESM26) rose +0.78%, and June E-mini Nasdaq futures (NQM26) rose +0.75%.

Stock indexes settled higher on Thursday, with the S&P 500 and Nasdaq 100 posting new all-time highs, and the Dow Jones Industrials posting a 3-month high.  Strength in technology stocks supported gains in the overall market on Thursday, led by a +13% jump in Cisco Systems after it raised its full-year revenue and earnings forecast.  Stocks also benefited from the US-China summit in Beijing, where the US and China discussed various issues, including expanding market access for US businesses and purchasing US energy and agricultural products.  Reuters reported that the US and China are weighing a potential framework under which each country identifies about $30 billion in goods on which tariffs could be eased without threatening national security interests. 

Stocks added to their gains on Thursday on signs of economic resilience after US reports showed that April retail sales rose as expected and that weekly jobless claims remained near historically low levels.

US weekly initial unemployment claims rose +12,000 to 211,000, showing a weaker labor market than expectations of 205,000. 

US Apr retail sales rose +0.5% m/m, right on expectations. Also, Apr retail sales ex-autos rose +0.7% m/m, right on expectations.

The US Apr import price index ex-petroleum rose by +0.7% m/m, stronger than expectations of +0.5% m/m.

Hawkish comments on Thursday from Kansas City Fed President Jeff Schmid were negative for stocks, as he said the fundamentals of the US economy are sound but "inflation is the most pressing risk to the economy."

WTI crude oil prices (CLM26) finished slightly higher on Thursday as talks to end the Iran war remain in limbo.  The Strait of Hormuz remains essentially closed, as about a fifth of the world’s oil and liquefied natural gas transits through the strait.  On Wednesday, the International Energy Agency (IEA) said in a monthly report that global oil inventories declined at a rate of about 4 million bpd in March and April, and the market will remain “severely undersupplied” until October even if the conflict ends next month.  Goldman Sachs estimates that the current disruption has drawn down nearly 500 million bbl from global crude stockpiles, with the drawdown potentially reaching 1 billion bbl by June.

The markets are discounting a 4% chance of a -25 bp FOMC rate cut at the next FOMC meeting on June 16-17.

Earnings reports thus far in this reporting season have been supportive of stocks.  As of Thursday, 83% of the 454 S&P 500 companies that reported Q1 earnings have beaten estimates.  Q1 S&P 500 earnings are projected to climb +12% y/y, according to Bloomberg Intelligence.  Stripping out the technology sector, Q1 earnings are projected to increase around +3%, the weakest in two years.

Overseas stock markets settled mixed on Thursday.  The Euro Stoxx 50 closed up +1.26%.  China's Shanghai Composite fell from a nearly 11-year high and closed down -1.52%.  Japan's Nikkei Stock Average fell from a record high and closed down -0.98%.

Interest Rates

June 10-year T-notes (ZNM6) on Thursday closed up by +3.5 ticks.  The 10-year T-note yield fell -0.6 bp to 4.463%.  T-notes moved slightly higher on Thursday after weekly US jobless claims rose more than expected, a dovish factor for Fed policy.  T-notes also moved higher on Thursday as bond dealers covered short positions placed in T-notes to hedge against the $125 billion of US government security sales from this week’s quarterly refunding.  T-notes fell back from their best level after Kansas City Fed President Jeff Schmid said, "inflation is the most pressing risk to the economy."

European government bond yields moved lower on Thursday.  The 10-year German Bund yield fell -5.8 bp to 3.043%.  The 10-year UK gilt yield fell -7.1 bp to 4.994%.

UK Mar manufacturing production unexpectedly rose +1.2% m/m, stronger than expectations of a -0.1% m/m decline and the largest increase in four months.

ECB Governing Council member Martins Kazaks said, "Oil prices are higher, we see that it's gradually starting to push inflation up, and if inflation expectations start to deteriorate, then the ECB will be forced to raise interest rates."

Swaps are discounting an 80% chance of a +25 bp ECB rate hike at its next policy meeting on June 11.

US Stock Movers

Chipmakers rallied on Thursday amid optimism that the summit between President Trump and China’s Xi Jinping could lead to a series of trade deals, especially around semiconductors. Broadcom (AVGO) closed up more than +6%, and Nvidia (NVDA) closed up more than +4%.  Also, Marvell Technology (MRVL) and KLA Corp (KLAC) closed up more than +3%, and ARM Holdings Plc (ARM) closed up by more than +2%.  In addition, Advanced Micro Devices (AMD), Applied Materials (AMAT), Lam Research (LRCX), and Texas Instruments (TXN) closed up by more than +1%.

Cybersecurity stocks moved higher on Thursday, providing support to the broader market. Palo Alto Networks (PANW) closed up more than +4%, and Okta (OKTA), CrowdStrike Holdings (CRWD), Cloudflare (NET), and Fortinet (FTNT) closed up more than +3%.  Also, Zscaler (ZS) closed up more than +1%.

Mining stocks retreated on Thursday as silver prices fell by more than -4% and copper prices slid by more than -1%.  Hecla Mining (HL) closed down more than -8%, and Barrick Mining (B) closed down more than -3%.  Also, Newmont Corp (NEM) closed down more than -2%, and Freeport McMoRan (FCX), Southern Copper (SCCO), and Coeur Mining (CDE) closed down more than -1%.

Cisco Systems (CSCO) closed up more than +13% to lead gainers in the S&P 500, Nasdaq 100, and the Dow Jones Industrials after reporting Q3 results that beat expectations and raised its full-year forecast. 

Stubhub Holdings (STUB) closed up more than +13% after reporting Q1 revenue of $446 million, better than the consensus of $425 million.

Take-Two Interactive Software (TTWO) closed up more than +6% on an unconfirmed report that said the company’s highly anticipated Grand Theft Auto VI game will soon be available for pre-order.

Ford Motor (F) closed up more than +6% after it said it would invest $2 billion to get into the data storage business, which includes producing large energy cells for the storage business.

Assurant (AIZ) closed up more than +4% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $285.

Commercial Metals (CMC) closed up more than +3% after UBS upgraded the stock to buy from neutral with a price target of $89. 

Doximity (DOCS) is down more than -23% after forecasting 2027 revenue of $664 million to $676 million, well below the consensus of $698.9 million.

Boeing (BA) closed down more than -4% to lead losers in the Dow Jones Industrials after China agreed to buy 200 Boeing planes, well below expectations of a 500-plane purchase.

Oklo (OKLO) closed down by more than -3% after announcing its intent to offer up to $1 billion in shares of its common stock.   

Akamai Technologies (AKAM) closed down more than -3% after agreeing to buy LayerX for about $205 million, saying the acquisition will cut full-year adjusted EPS by about 12 cents.

Kodiak Gas Services (KGS) closed down nearly -2% after offering shares for $70 to $72 per share in an overnight share sale, below Wednesday’s closing price of $75.74. 

Camden Property Trust (CPT) closed down more than -1% after Scotiabank downgraded the stock to sector underperform from sector perform with a price target of $95.

Earnings Reports(5/15/2026)

Actuate Therapeutics Inc (ACTU), Arrive AI Inc (ARAI), ARS Pharmaceuticals Inc (SPRY), Bright Minds Biosciences Inc (DRUG), Falcon's Beyond Global Inc (FBYD), Gossamer Bio Inc (GOSS), Lument Finance Trust Inc (LFT), Maui Land & Pineapple Co Inc (MLP), NexPoint Diversified Real Estate Trust (NXDT), Picard Medical Inc (PMI), RBC Bearings Inc (RBC), Smith-Midland Corp (SMID).