Traders work on the floor of the New York Stock Exchange (NYSE) during Pershing Square Capital Management LP’s initial public offering (IPO) in New York, US, on Wednesday, April 29, 2026.
Michael Nagle | Bloomberg | Getty Images
The stock market was split in half on Thursday, with strong earnings from old economy leader Caterpillar boosting the Dow Jones Industrial Average, while concerns about overly ambitious artificial intelligence spending knocked down Meta and the Nasdaq Composite.
The blue-chip Dow added 564 points, or 1.2%. The S&P 500 was up 0.2%, while the tech-heavy Nasdaq fell 0.4%.
Caterpillar shares popped 9% on Thursday after the company better-than-expected quarterly figures, boosting the Dow. The industrial name, which is viewed as a bellwether for the global economy, also upped its annual revenue outlook.
The report offers a glimmer of hope for the U.S. economy, which saw disappointing growth in the first quarter. On Thursday, the Commerce Department reported that gross domestic product rose at a 2% annualized pace in the period. While that was an increase from 0.5% in the fourth quarter of 2025, it was below the 2.2% estimate.
Conversely, Meta Platforms and Microsoft lost 9% and 5%, respectively, weighing on the S&P 500 and Nasdaq which are more tilted toward technology-related stocks. Meta shares were weighed by the company’s latest capital expenditures guidance, while user growth disappointed. The company also raised its capex spending for the year. That was a similar point of concern for Microsoft, as shares were under pressure after the company said spending will reach $190 billion due to high memory costs.
Even with the latest pressure in tech, a pop in those stocks has placed the three major averages on pace to round out a strong month. The S&P 500 has risen more than 9% month to date, putting the index on pace for its best month since November 2020. The Nasdaq is heading for a 13% jump, tracking for its best month since April 2020. The Dow is set to end April with a more than 6% gain — its strongest monthly performance since November 2024.
S&P 500, month-to-date
Meanwhile, oil prices reversed course Thursday, with Brent crude futures losing 2% to trade above $114 a barrel and West Texas Intermediate futures falling 0.5% to trade above $106. Crude prices rose Wednesday as overseas tensions remained high between the U.S. and Iran. The Wall Street Journal, citing U.S. officials, reported that President Donald Trump told his aides to prepare for an extended blockade of Iran.
Wall Street is coming off a mixed session following the Federal Reserve voting to hold interest rates steady in the range of 3.5% to 3.75%, as investors had largely expected, although the 8-4 vote marked the first time four Fed officials have dissented since 1992.
Sonu Varghese, global macro strategist with Carson Group, believes that more obstacles are appearing in the path to cut rates.
“The Fed held rates unchanged and we expect that to continue for the rest of this year. Several FOMC members are clearly uncomfortable with rising inflation and want to signal that the next move may not be a cut,” he said in a Wednesday email. “With Powell choosing to stay on as a Fed governor, those in favor of cuts, including incoming Chair Kevin Warsh, are in the minority. Warsh is going to have a hard time convincing a majority to cut rates.”
