US close: Investors take profits, stocks erase gains as peace deal hopes fade

(Sharecast News) - US stocks erased earlier gains to finish lower on Thursday as optimism surrounding the potential Washington-Tehran peace deal began to fade, while economic data came in mixed.

The Dow finished 0.6% lower, while the S&P 500 and Nasdaq - which both set record highs the previous session - fell 0.4% and 0.1% respectively.

For the Nasdaq in particular, the 17% rally over the past month lost steam as "nerves around supply disruption of crucial chipmaking materials has taken its toll on stocks like Arm Holdings and AMD", said AJ Bell's head of financial analysis Danni Hewson.

Sentiment got a boost on Wednesday, with stock markets surging and oil prices plunging following reports the US and Iran were close to agreeing on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.

Trump's tone soured somewhat since then, however, with the US president saying that a deal with Tehran was a "big assumption" and that if it does not agree, US bombing will resume "at a much higher level and intensity than it was before".

"Having rallied strongly over the past two sessions, bouncing back from their sharp selloff at the beginning of the week, there's been some evidence of profit-taking today. Investors appear to be expressing some caution and taking some risk off the table as yesterday's euphoria on hopes of a quick end to the US/Iran war start to fade," said David Morrison, senior market analyst at Trade Nation.

In other news, economic data was mixed. Initial weekly jobless claims rose 10,000 from the previous week's upwardly revised level to 200,000, below market expectations of 205,000. Continuing claims, on the other hand, fell by 10,000 to 1.76m, their lowest level since 2024.

US non‑farm business sector productivity increased 0.8% on an annualised basis in the first quarter, down from a revised 1.6% gain in the final quarter of 2025 and short of the 1.4% expected by economists. The Bureau of Labor Statistics also said unit labour costs increased 2.3% in the quarter, reflecting a 3.1% rise in hourly compensation and the 0.8% productivity gain.

Meanwhile, US employers announced 83,387 job cuts in April, according to Challenger, Gray and Christmas, the highest total in three months and up from 60,620 in March. However, despite the month‑on‑month increase, layoffs were still 21% lower than in at the same time a year earlier, although the latest figure also marked the third‑highest April total since 2009.

In equity news, shares in Whirlpool Corp dropped 12% after the American home appliances group slashed its earnings guidance almost in half and stepped up cost-saving and pricing actions amid a sinking of consumer confidence.

Peloton Interactive shot higher after the exercise equipment and fitness subscription service company nudged up its full-year guidance. Peloton posted a 1% uptick in third-quarter revenue to $631m, which was $6m above its guidance range.

McDonald's beat Wall Street expectations with its latest quarterly results, as the fast-food giant benefitted from stronger demand for value meals and promotional offers amid a tougher backdrop for consumer spending. However, shares erased gains by the close.

Dow Jones - Risers

Microsoft Corp. (MSFT) $420.77 3.34%

Salesforce.Com Inc. (CRM) $186.34 2.84%

International Business Machines Corporation (CDI) (IBM) $231.31 2.47%

Apple Inc. (AAPL) $287.44 1.56%

Nike Inc. (NKE) $44.41 1.21%

Visa Inc. (V) $321.28 0.78%

Unitedhealth Group Inc. (UNH) $369.74 0.67%

Walt Disney Co. (DIS) $108.66 0.56%

Boeing Co. (BA) $231.03 0.48%

Dowdupont Inc. (DWDP) $0.00 0.00%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $895.69 -3.37%

Dow Chemical Co. (DOW) $37.32 -3.06%

JP Morgan Chase & Co. (JPM) $306.27 -2.74%

Intel Corp. (INTC) $109.62 -1.91%

3M Co. (MMM) $143.75 -1.90%

Chevron Corp. (CVX) $182.50 -1.44%

Procter & Gamble Co. (PG) $146.06 -1.24%

Goldman Sachs Group Inc. (GS) $925.87 -1.22%

Merck & Co. Inc. (MRK) $112.30 -1.11%

Coca-Cola Co. (KO) $78.43 -1.01%

S&P 500 - Risers

H&R Block Inc. (HRB) $36.29 23.77%

Fortinet Inc. (FTNT) $107.97 22.51%

Teleflex Inc. (TFX) $131.68 6.86%

Intuit Inc. (INTU) $406.78 6.51%

Becton, Dickinson & Company (BDX) $153.26 5.87%

W.W. Grainger Inc. (GWW) $1,234.10 5.49%

Nvidia Corp. (NVDA) $211.50 5.47%

QUALCOMM Inc. (QCOM) $202.55 5.11%

Dxc Technology Company (DXC) $12.01 4.71%

Robert Half Inc. (RHI) $27.40 4.70%

S&P 500 - Fallers

Zoetis Inc (ZTS) $87.31 -21.50%

CenturyLink Inc. (LUMN) $8.46 -13.76%

Tapestry Inc. (TPR) $130.52 -12.30%

Whirlpool Corp. (WHR) $48.21 -11.91%

Leggett & Platt Inc. (LEG) $10.30 -9.41%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Apache Corp. (APA) $36.24 -7.65%

FMC Corp. (FMC) $13.68 -7.51%

Helmerich & Payne Inc. (HP) $36.90 -7.36%

Celanese Corp. (CE) $58.40 -5.99%

Nasdaq 100 - Risers

Workday, Inc. (WDAY) $130.88 6.71%

Intuit Inc. (INTU) $406.78 6.51%

Tesla Inc (TSLA) $411.79 5.85%

Nvidia Corp. (NVDA) $211.50 5.47%

QUALCOMM Inc. (QCOM) $202.55 5.11%

Gen Digital Inc. (GEN) $20.19 4.61%

Autodesk Inc. (ADSK) $251.04 4.10%

Paychex Inc. (PAYX) $94.26 3.86%

Automatic Data Processing Inc. (ADP) $214.09 3.41%

Baidu Inc. (BIDU) $139.87 3.41%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Henry Schein Inc. (HSIC) $70.50 -5.13%

Broadcom Inc. (AVGO) $412.56 -4.44%

Applied Materials Inc. (AMAT) $410.64 -4.09%

Vodafone Group Plc ADS (VOD) $15.69 -2.18%

Fastenal Co. (FAST) $44.36 -2.01%

Intel Corp. (INTC) $109.62 -1.91%

Lam Research Corp. (LRCX) $286.52 -1.90%

CSX Corp. (CSX) $44.46 -1.88%

J.B. Hunt Transport Services Inc. (JBHT) $242.19 -1.84%