The Nasdaq Composite (^IXIC) is under pressure this morning after closing at a record high Wednesday, with index futures slipping. Traders are digesting a wave of earnings, a tick higher in jobless claims, and a complicated reaction to Tesla’s post-close report. Over the past five trading sessions, the Nasdaq Composite (^IXIC) has tacked on 2% and remains in positive territory YTD, up 5.7%. A renewed escalation in the Mideast conflict has dampened market sentiment and sent all three of the major stock market averages, the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average, lower on the day.
Tensions in the Strait of Hormuz escalated sharply Thursday, keeping energy markets on edge and weighing on stocks. President Trump warned the Navy has standing orders to fire on any vessel caught laying mines in the critical waterway, while the Pentagon released footage of troops boarding the Majestic X, a sanctioned tanker allegedly hauling Iranian crude. Iranian forces meanwhile boarded three commercial ships Wednesday, towing two into Iranian waters. Tehran’s lead negotiator has made clear the strait stays contested as long as the U.S. blockade holds. Mediators are pushing for a U.S.-Iran meeting as early as Friday.
Netflix and Tesla set the tone
The biggest single-stock stories sit on either side of the tape. Netflix (NASDAQ:NFLX | NFLX Price Prediction) is up more than 1% premarket after authorizing an additional $25 billion share buyback, the largest such authorization in company history. The move lands on a stock that has taken a beating, with shares at $93 and down 13% over the past week after the April 16 Q1 report delivered $12.25 billion in revenue and EPS of $1.23, missing expectations. Analyst price targets still sit near $114, so the buyback signals meaningful capital allocation.
Tesla (NASDAQ:TSLA) is the more complicated read. The company beat on Q1 with non-GAAP EPS of $0.41 on revenue of $22.39 billion (+16% YoY), and auto gross margin expanded to 21% from 16%. Shares initially rose, then shed about 3% after Elon Musk warned capital expenses would rise to fund AI-powered self-driving and humanoid robots. Reddit sentiment cooled to bearish in 5 of 6 overnight windows, bottoming at a score of 25. Polymarket traders now price only 57% odds of a close above $380 by month-end.
Chips hold the line
Semiconductor strength is cushioning the open. The Philadelphia Semiconductor Index rose Wednesday for the 16th straight session, its longest run on record going back to 1994. NVIDIA (NASDAQ:NVDA) sits near $203, up 15% in the past month, and Oklo (NYSE:OKLO) jumped 16% Wednesday to $72 after partnering with NVIDIA and Los Alamos National Lab on nuclear fuel validation and AI-driven R&D tied to the federal Genesis Mission. The weak spot is Super Micro Computer, down roughly 10% after reports it lost a material Oracle GB300 contract worth more than $1.1 billion, with added pressure from NVDA B200 inventory concerns. Palantir is drawing interest on a new USDA deal.
What it means for investors
Initial jobless claims printed 214,000 against 211,000 expected, a nudge that keeps the labor picture healthy without rattling the Fed narrative. The VIX at almost 20 says traders are alert but not defensive. Watch Intel’s after-close print, the SMCI story’s follow-through, and whether the semiconductor streak extends to 17.
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