Wall Street: Dow Jones climbs, Nasdaq falls amid strong earnings & Mideast tensions; Meta sheds 10%, Alphabet soars 6%

The Dow Jones advanced on Thursday while the Nasdaq faced pressure, even as investors balanced strong corporate earnings against rising tensions in the conflict with Iran.

At 10:14 a.m. ET on Thursday, the Dow Jones Industrial Average rose 429.39 points, or 0.88%, to 49,233.73, the S&P 500 was flat at 7,138.78 and the Nasdaq Composite dropped 77.65 points, or 0.31%, to 24,595.59.

At the open, the S&P 500 rose 25.8 points, or 0.36%, to 7,161.75​, while the Nasdaq Composite rose 186.7 points, or 0.76%, to 24,859.941. The Dow Jones Industrial Average fell 98.9 points, or 0.20%, to 48,762.93.

Energy markets experienced significant turbulence, with crude oil prices whipsawing and pushing toward their highest peaks since the onset of hostilities.

Earlier in the day, oil futures had dipped as deadlocked negotiations between the US and Iran cast a shadow over the potential reopening of the Strait of Hormuz and the prospect of a lasting ceasefire.

According to an Axios report, President Donald Trump was slated to receive a briefing from the leader of the US Central Command on new plans for potential military action against Iran.

"I think there's this big tug of war, but the earnings side is winning so far," said Angelo Kourkafas, senior global investment strategist at Edward Jones.

"Market is trying to look through that near-term uncertainty, but of course, the longer it lasts, the more acute the pressures are."

The US government figures released on Thursday indicate that economic growth accelerated during the first quarter, fueled by a 9.3% surge in federal spending following last year’s shutdown.

However, analysts caution that this momentum may be fleeting, as the ongoing war drives gasoline prices higher and places significant strain on household budgets.

In the bond market, the yield on the 10-year Treasury fell to 4.38% from 4.42% late on Wednesday.

Key Stock Movers

In the technology sector, Meta Platforms saw its stock plummet nearly 10%, while Google’s parent company, Alphabet, enjoyed a surge of over 6%. These dramatic shifts occurred just a day after the industry giants released quarterly figures, revealing sharply contrasting market sentiment regarding their massive investments in artificial intelligence.

Other tech leaders felt the pressure as well; Amazon and Microsoft, which also disclosed their earnings on Wednesday, saw shares decline by 2% and 3.7%, respectively, as investors weighed the long-term costs of their AI strategies.

Eli Lilly shares climbed 7% after the pharmaceutical giant increased its full-year profit outlook, citing relentless demand for its weight-loss treatments.

Meanwhile, Caterpillar stock surged 8.4% to hit an all-time high, as the equipment manufacturer reported first-quarter earnings that easily surpassed market expectations.

Bullion

Gold prices climbed on Thursday as the US dollar weakened and crude oil retreated from intraday four-year highs. Analysts noted that the surge was primarily driven by heightened safe-haven demand, as investors grew increasingly concerned that the conflict with Iran could escalate into a broader regional war.

As of 1158 GMT, spot gold climbed 1.9% to $4,629.83 per ounce. US gold futures for June delivery rose 1.8% to $4,642.90.

Among other metals, spot silver rose 2.9% to $73.57 per ounce, platinum gained 4.1% to $1,955.70, and palladium was up 2.2% at $1,490.36.

"Certainly some sense of uncertainty in the Middle East is fueling something of a recovery in gold. From the strength of the recovery at the moment, there was also some suggestion that the price seems to have found for now a temporary floor," said independent analyst Ross Norman.