Markets closed mixed on Thursday as traders digested a slate of economic data and cautious Fed minutes. The S&P 500 edged up 0.3% to 5,450.21, supported by tech and healthcare. The Dow Jones Industrial Average slipped 0.1% to 39,800.74, weighed by energy and materials. The Nasdaq Composite (IXIC) outperformed, gaining 0.5% to 17,200.35, driven by AI-related names.
Top Movers: On the upside, Apple advanced 2.1% following an upbeat product cycle outlook, while Microsoft rose 1.8% on cloud services strength. Eli Lilly added 1.5% after positive trial results. On the downside, Exxon Mobil fell 2.3% as crude oil dipped on demand concerns. Boeing dropped 1.7% after reporting delivery delays, and Caterpillar slipped 1.2% amid weak China data.
Sector Rotation: Clear rotation out of cyclicals into defensives and growth. Technology and healthcare were the best performers, both up over 0.6%. Consumer staples gained 0.4% as investors sought safety. Meanwhile, energy dropped 1.3%, materials fell 0.8%, and industrials were down 0.5%. Financials were flat as bond yields stabilized.
Key Economic Data: The second estimate of Q1 GDP was revised to 2.1% annualized, slightly below the initial 2.3%, reflecting softer consumer spending and inventories. Weekly jobless claims came in at 220,000, in line with expectations, signaling a still-tight labor market. Pending home sales fell 2.4% month-over-month, highlighting housing market headwinds from elevated rates.
FOMC & Tariff Headlines: The Fed released minutes from its late-April meeting, showing officials largely in agreement on holding rates steady, but concerns over sticky inflation lingering above 3%. Most participants saw no urgency to cut until inflation trended lower for several months. On tariffs, the White House announced a 30-day extension of negotiations with the EU on steel and aluminum levies, avoiding immediate escalation but keeping markets on edge. Separately, trade talks with China remained tense after new semiconductor export curbs were hinted at.
Overall, the market displayed cautious optimism, balancing resilient earnings with geopolitical and policy uncertainty. Volume was slightly below average.
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