Stock Market Today: S&P 500, Nasdaq Set New All-Time Highs as Oil Turns Lower, Monthly Inflation Data Softer Than Expected

U.S. stock markets rallied Thursday, with the Nasdaq Composite and S&P 500 reaching fresh all-time highs after inflation data came in below expectations. The Nasdaq rose 0.9% and the S&P 500 climbed 0.6%, while the Dow Jones Industrial Average dipped 0.1% after setting records earlier in the week. The Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, showed a 3.8% year-over-year increase in April, matching forecasts, but monthly PCE rose only 0.4%, below the expected 0.5%. The softer inflation reading eased pressure on bond yields, with the 10-year Treasury yield dropping below 4.46% after opening above 4.50%. However, first-quarter GDP was revised downward to 1.6%, and personal income remained flat in April, missing expectations of a 0.4% rise. Analysts noted that while resilient consumer spending supported markets, persistent inflation reduces the likelihood of Federal Reserve rate cuts in 2026. Oil prices declined as reports suggested the U.S. and Iran had agreed to extend their ceasefire and resume nuclear negotiations, though the deal required further approval. West Texas Intermediate crude fell 0.1% to $88.65 per barrel, while Brent crude dropped 0.6% to $93.65. Meanwhile, gold futures surged 2% to $4,540 per ounce, and Bitcoin dipped slightly to $73,500 after earlier peaks near $75,300. After-hours earnings reports drove volatility, with Snowflake shares jumping 40% following a $6 billion AI partnership with Amazon Web Services and strong revenue growth. Marvell Technology rose 3.5%, while Salesforce slipped marginally. Kohl’s surged 18% on positive retail results, and Best Buy also saw gains before trading resumed.