U.S. stocks traded lower on Thursday, with the Dow Jones Industrial Average and S&P 500 each slipping about 0.3% and the tech-heavy Nasdaq Composite falling closer to 0.4%. The decline followed a cautious start in futures trading after the Federal Reserve’s latest meeting minutes struck a more hawkish tone than investors anticipated, tempering optimism from the prior session’s rebound
Pressure grew as crude oil prices surged on rising geopolitical tensions tied to Iran, stoking fresh inflation concerns just ahead of Friday’s closely watched PCE reading. Rising energy costs, combined with mixed corporate guidance and uncertainty around the timing of interest-rate cuts, reinforced a risk-off mood across Wall Street.
Market Movers:
- Medical Properties Trust (MPT) jumped roughly 18% after fourth-quarter results topped expectations and concerns tied to former tenant Prospect Medical Holdings continued to ease. The REIT also secured a new long-term lease expected to generate about $45 million in annual rent and reported improving cash collections from replacement tenants.
- Etsy (ETSY) rose about 9% as stronger-than-expected gross merchandise sales and advertising revenue helped offset softer profits and total revenue. Sentiment was further supported by the announced $1.2 billion cash sale of Depop to eBay and guidance pointing to improving margins.
- Occidental Petroleum (OXY) gained around 6% after beating profit estimates and boosting shareholder returns. The company increased its dividend and sharply reduced debt following the completion of its OxyChem divestiture, strengthening confidence in its balance sheet.
- Figma (FIG) advanced near 3% on robust quarterly growth and upbeat forward guidance. Revenue surged year over year, user engagement climbed sharply, and full-year projections signaled continued high-growth momentum.
- DoorDash (DASH) climbed roughly 3% as strong order growth and optimistic outlook overshadowed a quarterly earnings miss. Investors focused on accelerating demand trends and improving visibility into future gross order value and EBITDA.
- eBay (EBAY) added about 4% after beating revenue and earnings expectations and issuing upbeat first-quarter guidance. A new $2 billion share repurchase authorization and higher dividend further supported the stock.
- Klarna (KLAR) plunged around 26% despite solid quarterly results after warning that GMV growth will slow and near-term profit guidance trailed expectations. Management cited gradual merchant activation and difficult comparisons as headwinds for the coming quarters.
- Avis Budget Group (CAR) dropped roughly 21% following a quarterly miss tied to restructuring costs and electric-vehicle fleet write-downs. The company said it is tightening fleet discipline and focusing on sustainable profitability heading into 2026.
- Carvana (CVNA) slid about 6% as profitability concerns overshadowed strong revenue and sales volume growth. Margin compression, weaker wholesale profitability, and the absence of near-term guidance weighed on investor sentiment.
Oil, Inflation, and Policy Uncertainty Drive Market Mood
Energy markets remained key to Thursday’s decline. Crude prices climbed sharply amid fears of escalating conflict in the Middle East, a development that could threaten supply routes and complicate the inflation outlook just as policymakers debate the timing of future rate cuts. At the same time, Federal Reserve commentary and meeting minutes suggested officials remain cautious about declaring victory over inflation. That tone pushed Treasury yields higher and reinforced expectations that borrowing costs may stay elevated longer than previously hoped.
Economic Signals Paint a Mixed Backdrop
Beyond geopolitics and policy, incoming data highlighted an uneven economic landscape. Mortgage rates have fallen to multi-year lows, supporting housing activity, yet trade deficits and lingering consumer pressures underscore structural challenges still facing growth. Corporate guidance has also turned more selective, with strong earnings reactions in pockets of technology and energy contrasted by sharp selloffs in consumer finance, travel, and used-car retail — evidence of a market still searching for durable leadership.
Looking Ahead
Attention now turns to the upcoming PCE inflation report and further signals from the Federal Reserve on the path of interest rates. With oil volatility, geopolitical risk, and uneven corporate fundamentals shaping sentiment, markets may remain choppy until clearer evidence emerges that inflation is firmly under control and growth can stabilize.