New York, May 7, 2026, 5:36 PM EDT
U.S. stocks finished in the red Thursday. The S&P 500 gave up 0.38% to end at 7,337.11, snapping this week’s record streak after chipmakers stumbled. The Nasdaq slipped 0.13% to 25,806.20. Over in the Dow: down 0.63% to 49,596.97. Intel and AMD both lost about 3%. Arm’s U.S.-listed shares slumped, and the PHLX chip index, tracking semiconductors, dropped 2.7%.
This shift landed right after Wall Street piled into the AI rally. Following AMD’s upbeat revenue forecast on Wednesday, shares jumped close to 19%, dragging Intel up and driving both the S&P 500 and Nasdaq to fresh record closes. But by Thursday, investors wasted no time cashing out as anxiety over AI supply chains crept in.
The argument for equities still stands. Nearly 70% through the first-quarter earnings cycle, S&P 500 profits are pacing for a 28.2% gain—the sharpest jump since Q4 2021, LSEG figures show, as reported by Reuters. “Earnings have driven the move higher,” said Chris Fasciano, chief market strategist at Commonwealth Financial Network. Deutsche Bank’s Binky Chadha went further, describing the profit surge as “strongest in two decades.” Reuters
Oil kept the tape choppy. Brent crude, the global gauge, ended off 1.2% at $100.06 per barrel, while U.S. West Texas Intermediate settled at $94.81. Both benchmarks had dropped as much as $5 earlier in the session, tracking speculation about a possible short-term deal between Washington and Tehran. The volatility rippled into equities—higher energy costs tend to push up inflation and squeeze corporate margins.
Stocks seem to be handling daily swings in oil better than back in March, but rates haven’t faded from the spotlight. Daniel Skelly, who leads Morgan Stanley’s Wealth Management Market Research & Strategy Team, said oil’s “longer-term impact on inflation is still an open question.” Meanwhile, 10-year Treasury yields pushed up to 4.382%. Investors are also looking ahead to Friday, when the U.S. releases its monthly nonfarm payrolls numbers. Reuters
Datadog stood out among the day’s winners. The cloud-monitoring company bumped up its 2026 revenue outlook to a range of $4.30 billion to $4.34 billion—a lift from its earlier estimate of $4.06 billion to $4.10 billion. First-quarter revenue came in at $1.01 billion, up 32%. CEO Olivier Pomel pointed to demand for “cloud-based, AI-enabled solutions.” Shares rallied in regular trading. Reuters
Consumer demand faltered. Shares of Whirlpool tumbled to their lowest level in over 14 years after the company slashed its 2026 adjusted earnings outlook to $3 to $3.50 a share, down from roughly $7, and halted its dividend. “Consumers are holding back,” CEO Marc Bitzer said on the call, adding that people are opting to repair appliances instead of buying new ones. Reuters
Airbnb flagged softer growth ahead after the close, citing ongoing travel headwinds from the Middle East conflict. Nights booked in the second quarter are set to decelerate compared to the first, the company said, pointing to regional disruptions. Even so, Airbnb bumped up its 2026 revenue outlook, now aiming for growth in the low- to mid-teens, up from its previous pledge for at least low double digits. Shares slipped 1.57% after hours.
Tech earnings after the bell landed on both sides of the tape. CoreWeave topped revenue forecasts as AI computing demand persisted, yet shares barely moved after hours—investors balked at operating costs, which more than doubled. Cloudflare tanked over 13% following a revenue outlook that missed the mark and plans to lay off roughly 20% of staff. Coinbase slipped around 4%, chalking up its second consecutive quarterly loss.
The U.S. Trade Court has shot down President Donald Trump’s most recent 10% global tariffs, saying the sweeping duties don’t hold up under a 1970s-era trade law. The ruling landed after the cash market shut, so investors will have to judge the impact on import-heavy stocks when trading resumes.
Still, the trade looks shaky. SEB Research’s Ole Hvalbye figures Brent could land somewhere in the $80 to $90 range fast if a U.S.-Iran deal gets inked. But if talks fall apart or strikes resume, $120-plus isn’t out of the question. A strong jobs print would just give the Fed more ammunition to keep rates steady. At this stage, the rally is feeding more off earnings than hopes for looser policy.
