U.S. stock markets continued their upward trend on Thursday, with the S&P 500 and Nasdaq Composite achieving new all-time highs during the session. The Dow Jones Industrial Average also secured another record closing high, reflecting broad investor confidence despite mixed signals from individual company performances.
Overnight futures trading suggested the positive momentum may continue, with Dow Jones, S&P 500, and Nasdaq futures all showing modest gains. The market's advance comes as several key technology and AI-related stocks demonstrated significant strength, while electric vehicle maker Tesla saw its stock decline after announcing record delivery numbers.
Key Takeaways
- The S&P 500 and Nasdaq Composite reached new intraday all-time highs, while the Dow Jones set a new record for its closing value.
- Several prominent AI and technology stocks, including Snowflake, Broadcom, and AMD, showed positive movement, indicating potential buying opportunities.
- Tesla's stock price fell by over 5% in a "sell-the-news" event, even after the company reported record-breaking vehicle deliveries for the third quarter.
- Market activity was influenced by a drop in crude oil prices to a near five-month low and a slight decrease in the 10-year Treasury yield.
Major Indices Continue Upward Trend
The stock market registered a session of narrow but positive gains on Thursday. The Dow Jones Industrial Average increased by 0.2%, establishing a new closing record. The S&P 500 index also edged up slightly, while the technology-heavy Nasdaq Composite saw a more pronounced advance of 0.4%.
Smaller companies also participated in the rally, with the Russell 2000 index, a benchmark for small-cap stocks, rising by 0.7%. The broad-based strength across different market segments highlights a generally positive sentiment among investors.
Overnight Futures Activity
Following the market close, futures contracts pointed toward continued gains. Dow Jones futures were trading 0.15% above fair value. S&P 500 futures rose by 0.2%, and Nasdaq 100 futures also climbed 0.2%. It is important to note that overnight futures performance does not always directly predict trading in the next regular market session.
Technology and AI Stocks Show Strength
The technology sector was a significant driver of Thursday's market performance, with several companies linked to artificial intelligence showing notable gains. These movements suggest that investor interest in AI infrastructure and software remains high.
Key Stock Movements
- Snowflake (SNOW): The data analytics software company's stock increased by 4.3%, closing at $240.54. This move pushed the stock past recent short-term highs, signaling a potential early entry point for investors.
- Broadcom (AVGO): Shares of the custom AI chipmaker rose 1.4% to $338.18. The stock moved above its 21-day moving average, a technical indicator often watched by traders.
- Advanced Micro Devices (AMD): AMD stock gained 3.5%, finishing the day at $169.73. This was the first time the stock closed above its 50-day moving average since early September.
- Palantir Technologies (PLTR): The software company's stock climbed 1.1% to $187.05, clearing a technical buy point of $185.75.
Semiconductor ETF Performance
The VanEck Vectors Semiconductor ETF (SMH), which holds significant positions in Broadcom and AMD, gained 1.4% during the session, reflecting the strength in the chip sector.
Other speculative technology stocks also had strong sessions. Astera Labs (ALAB) jumped 7.8%, while Credo Technology (CRDO) climbed 3.25%. In the quantum computing and nuclear energy spaces, IonQ (IONQ) stock rose 10.3%, and Oklo (OKLO) surged 11.2%.
Tesla Stock Declines Despite Record Deliveries
In a notable divergence from the broader tech rally, Tesla (TSLA) stock experienced a significant reversal. After hitting a new 2025 high of $450.75 shortly after the market opened, the stock reversed course and closed down 5.1% at $436.
The decline occurred despite the company's announcement of record third-quarter deliveries, which totaled 497,099 vehicles. Analysts suggest this is a classic "sell-the-news" reaction, where investors take profits after a period of strong performance leading up to a positive announcement.
"After running up strongly for the past several weeks, investors took profits despite Tesla deliveries hitting a record," noted market observers. The delivery figures were boosted by U.S. tax credits that have since expired, leading to expectations of a potential drop in deliveries for the fourth quarter.
Much of the recent optimism surrounding Tesla's stock has been tied to its progress in self-driving technology and future robotaxi plans. The stock's chart is still considered healthy by many analysts, who suggest a period of consolidation could be beneficial before it attempts to reach its all-time high of $488.54.
Broader Market and Economic Indicators
Several economic factors provided context for Thursday's market movements. The ongoing U.S. government shutdown has delayed the release of key economic data, including the September jobs report, which investors would typically use to gauge the health of the economy.
Commodities and Treasury Yields
In the commodities market, U.S. crude oil prices fell 2.1% to settle at $60.48 a barrel. This marks the lowest price for crude oil in nearly five months and was attributed to expectations of a potential production increase from OPEC+.
Sector-Specific ETF Movements
The decline in oil prices was reflected in the Energy Select SPDR ETF (XLE), which fell 1%. Other sector ETFs showed mixed results, with the Health Care Select Sector SPDR Fund (XLV) declining 0.2% and the Industrial Select Sector SPDR Fund (XLI) adding 0.25%.
Meanwhile, the yield on the 10-year Treasury note decreased by two basis points to 4.09%. Lower bond yields can make stocks appear more attractive to investors by comparison, potentially contributing to the day's equity market gains.
Navigating a Market at Record Highs
With major indices at or near all-time highs, investors are closely monitoring individual stocks for signs of continued strength. A steady stream of companies has been showing positive technical signals, offering potential opportunities for those looking to invest.
However, the market environment requires careful navigation. While some recent stock breakouts have performed well, others have faltered. Analysts advise investors to remain disciplined, exiting positions that are not working as expected and reallocating capital to new opportunities as they arise.
Staying informed about the overall market direction and identifying leading sectors and stocks remains a key strategy for investors aiming to capitalize on the current upward trend while managing potential risks.
