The S&P 500 (^GSPC) is pointing lower ahead of the open on Thursday, with traders taking profits after Wednesday’s record-setting session where the benchmark rose 1% and the Nasdaq added nearly 2%. Early weakness in futures looks more like profit-taking than a change in tone, with earnings beats, cooler oil, and fresh buybacks setting the tone. Despite volatility, the S&P 500 (^GSPC) remains above the 7,100 level and has tacked on 1.64% this week so far.
Fresh escalation in the Strait of Hormuz has rattled risk sentiment. Trump has ordered the Navy to shoot any vessel placing mines in the strait, while U.S. mine sweepers are actively clearing the waterway at tripled capacity. Tehran has signaled it does not plan to engage in near-term negotiations, keeping a ceiling on any sustained risk-on move. Despite modest pullbacks, oil remains elevated, with Brent crude above $100 per barrel, pressuring airline stocks.
American Airlines(Nasdaq: AAL) beat quarterly forecasts but cut its 2026 earnings outlook, citing rising oil costs from the conflict. The stock is up 2% in early morning trading.
On the earnings front, the picture is otherwise resilient: roughly three out of four S&P 500 companies reporting so far have surpassed either earnings or revenue expectations.
Tesla whipsaws on capex and a $2B AI deal
Tesla (NASDAQ:TSLA | TSLA Price Prediction) is the session’s biggest tell. Q1 non-GAAP EPS of $0.41 beat the $0.36 consensus by 14% beat consensus, and automotive gross margin expanded to 21% from 16% from +4% to roughly -3% a year ago. Shares flipped after Elon Musk confirmed full-year capex guidance of $25 billion and the company disclosed an agreement to acquire an AI hardware company for up to $2 billion in Tesla common stock and equity awards.
Netflix authorizes its biggest buyback ever
Netflix (NASDAQ:NFLX) gained more than 1% in premarket after authorizing an additional $25 billion share buyback, the largest in company history. The repurchase follows a quarter in which Netflix raised its 2026 free cash flow target to roughly $12.5 billion and banked a $2.80 billion Warner Bros. termination fee. Shares closed at $93, still down more than 13% over the past week.
Alphabet and the economic read
Alphabet (NASDAQ:GOOGL), up more than 12% over the past month, is getting a fresh AI data point. Sundar Pichai confirmed that 75% of all new code at Google is now written by AI as of Q2 2026, up from 50% in Q3 2025 and 25% in Q3 2024, a productivity curve that keeps investors comfortable with 2026 capex guidance of $175 billion to $185 billion. Initial jobless claims came in at 214,000 versus 211,000 expected, a small uptick that keeps the labor backdrop benign.
What it means and what to watch
WTI is hovering near $93 and Brent near $102, easing pressure on margins and consumer sentiment. The VIX near 20 sits at the top of the normal band, down 27% from late-March highs near 31. With beats broadening, the burden of proof stays with the bears. Watch post-close prints and follow-through buying in the mega-cap AI complex to see whether today’s strength has legs into Friday.
Top Gaining Stocks
Top Losing Stocks