NEW YORK, May 7, 2026, 13:03 (EDT)
- The Dow slipped below 50,000 after briefly trading higher at the open. As of 13:02:30 ET, it was down 303.43 points, or 0.61%, sitting at 49,607.16, according to real-time figures.
- The S&P 500 and Nasdaq brushed new records earlier, though momentum faded when chip stocks slipped and attention shifted to Friday’s jobs numbers.
- Oil sliding added a lift at the open, but talks on a U.S.-Iran framework were still unresolved.
The Dow Jones Industrial Average couldn’t hang onto the 50,000 level Thursday. After opening at 50,002.39 and hitting an early peak of 50,130.20, the index faded, dipping to 49,607.16 by early afternoon, according to Investing.com. Wall Street’s historic rally lost a bit of steam.
This turnaround is notable, with the earlier climb built on two things: cheaper oil and a fresh surge in tech buying. Both the S&P 500 and the Nasdaq Composite notched new highs during the session. The Dow, however, trailed—evidence that optimism around crude didn’t reach every sector.
It’s a tricky moment. Investors are waiting for Friday’s nonfarm payrolls to get a clearer signal on the U.S. labor market. Weekly jobless claims bumped up by 10,000 to 200,000 — still shy of the 205,000 forecast. “Steady as a rock,” FWDBONDS chief economist Christopher Rupkey called it, which helps explain the stubborn reluctance to pile back into rate-cut trades. Reuters
Stocks caught a lift from oil early on. By 11:21 a.m. ET, Brent crude slid 3.17% to $98.06 a barrel, while U.S. West Texas Intermediate dropped 3.31%, landing at $91.93. Investors sized up the potential for a narrow U.S.-Iran agreement that might eventually open up the Strait of Hormuz.
The Dow’s setup skews moves toward pricier stocks, so the day’s drop was more about individual names than it might first appear. S&P Dow Jones Indices weights the 30-stock average by price, not market value, so stocks trading at higher prices pack a bigger punch. Caterpillar and Merck led losses, erasing roughly 194 points from the Dow together, according to MarketWatch. JPMorgan Chase, Chevron, and Sherwin-Williams chipped in to the slide as well.
Chip stocks lagged. Arm Holdings slid, supply concerns for its upcoming AI chip dampening the upbeat earnings forecast; shares of Intel and Advanced Micro Devices also edged lower. Datadog bucked the trend, lifting its full-year outlook and sending cybersecurity names CrowdStrike and Palo Alto Networks up with it.
“The markets are just waiting for news” about Iran and “the big jobs number tomorrow,” said Phil Blancato, chief market strategist at Osaic Wealth in New York. Blancato noted earnings have held up, giving the market some backbone even with elevated fuel prices. Reuters
Earnings are still doing the heavy lifting for U.S. stocks. S&P 500 firms are pacing toward first-quarter earnings growth of 28.2%—a figure not seen since Q4 2021, LSEG data shows, as reported by Reuters. “Earnings have been the engine,” said Chris Fasciano, chief market strategist at Commonwealth Financial Network, adding that the rally picked up once worst-case scenarios over the Iran conflict faded. Reuters
The Dow lagged, even as global markets mostly held up. MSCI’s Asia-Pacific index outside Japan touched a record high, according to Reuters, and Japan’s Nikkei blew past the 62,000 mark for the first time. Europe pulled back, giving back some of its gains from the previous session’s rally. “The market momentum around the Middle East was going in a good direction,” said Samy Chaar, chief economist at Lombard Odier. Reuters
But cracks remain in the relief trade. RBC’s Helima Croft cautioned it’s “far from clear” there’s been any real progress toward reopening the Strait of Hormuz. SEB Research’s Ole Hvalbye flagged that if talks fall apart, Brent could jump back over $120 a barrel. Even with a deal, risk premiums in paper markets might drop before actual crude shipments catch up. Reuters
Another drag comes from Federal Reserve policy. Cleveland Fed President Beth Hammack warned rates would likely remain on pause “for quite some time” as policymakers take on both inflation pressures and economic uncertainty. The central bank kept its key rate pegged at 3.5% to 3.75% after its most recent meeting. Reuters
Dow 50,000 grabs the headline, but traders are watching plenty more than just that round number. Focus now shifts to Friday’s payrolls report, Iran’s answer to the U.S. proposal, and whatever oil does next—all wild cards for blue chips. The question: Was Thursday’s drop just a breather in an earnings-fueled run, or the first crack in the rally?
