S&P 500 Slips as Oil Surges and Nvidia Disappoints Post-Earnings

CNBC reported Thursday that the S&P 500 falls were led by a sharp crude oil spike and renewed inflation anxiety, with Nvidia shares adding to the pressure despite a blowout quarterly report.

Markets Retreat After Three-Day Rally

The S&P 500 ended the session down 0.5%, reversing Wednesday’s rebound that had snapped a three-day losing streak. The Nasdaq Composite declined 0.7%, while the Dow Jones Industrial Average hovered near the flatline. The session marked an abrupt reversal for investors who had grown cautiously optimistic just 24 hours earlier.

Scott Helfstein, head of investment strategy at Global X ETFs, told CNBC the backdrop remains tricky. He noted that a strong earnings season had lifted profit expectations, but persistent inflation concerns and potential demand destruction were proving difficult for markets to shake off.

Oil Tops $100 as Iran Directive Rattles Traders

The session’s sharpest catalyst came from the energy market. West Texas Intermediate futures jumped roughly 3% to around $102 per barrel, while Brent crude climbed to $108. The catalyst was a Reuters report citing sources that Iran’s supreme leader had directed authorities to keep enriched uranium stockpiled inside the country, clouding the outlook for a diplomatic resolution to the ongoing U.S.-Iran conflict. Oil’s surge fed directly into bond markets. The benchmark 10-year Treasury yield rose four basis points to 4.615%, and the 30-year bond yield edged up two basis points to 5.14%.

Wednesday’s Rally Offered Brief Relief

The prior session had provided a sharp contrast. Stocks climbed Wednesday as crude and yields both retreated. Market sentiment received a boost after President Donald Trump indicated the administration was approaching final-stage talks with Iran. That optimism evaporated quickly once the opposing directive emerged from Tehran.

Nvidia Beats but Bulls Stay Cautious

Nvidia delivered quarterly earnings and forward guidance that comfortably topped Wall Street estimates. The chipmaker also raised its quarterly cash dividend to 25 cents per share. Despite that, Nvidia shares fell roughly 2% on Thursday. Analysts noted that investors have grown accustomed to the company clearing the bar, making each successive beat harder to celebrate. Separately, Jefferies analyst Janardan Menon flagged that Nvidia’s push into the central processing unit market, a space the company values at $200 billion in potential revenue, could generate meaningful upside for Arm Holdings as hyperscaler CPU share continues to shift.

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