US Stocks Mixed in Early Trade as Crude Oil Drops and Jobless Claims Stay Firm

U.S. stocks traded mixed during the first hour of Thursday’s session as investors weighed resilient labor-market data, easing oil prices and another wave of enthusiasm surrounding artificial intelligence spending and earnings.

The Dow Jones Industrial Average slipped 17 points, or 0.03%, to 49,893. The S&P 500 edged up 1.76 points, or 0.02%, to 7,366, while the Nasdaq Composite gained 81.79 points, or 0.32%, to 25,920.7 in early trading.

Technology shares led the market higher as investors rotated back into software and AI-linked companies after recent volatility in semiconductor stocks. Enthusiasm around artificial-intelligence earnings and concerns over chip supply constraints were driving money flows away from semiconductors and into software names viewed as more insulated from hardware bottlenecks.

Investors also drew support from signs that the labor market remains relatively stable. Weekly jobless claims rose less than economists expected, reinforcing expectations that the U.S. economy continues to avoid a sharp slowdown despite elevated interest rates. Initial claims increased to 200,000 last week, below forecasts of 205,000.

The softer-than-expected claims data helped ease fears of an abrupt economic deterioration while also reducing pressure on the Federal Reserve to move aggressively toward rate cuts. Traders continue to monitor labor-market conditions ahead of Friday’s release of the April Jobs report.

Meanwhile, falling crude prices helped improve broader risk sentiment. U.S. crude oil futures dropped 2.99 points, or 3.14%, to $92.09 per barrel during the morning session as traders reacted to reports of possible progress in negotiations involving Iran and the U.S. over Middle East shipping routes and energy supply disruptions.

Market volatility also remained subdued. The CBOE Volatility Index, or VIX, fell 0.14 points, or 0.81%, to 17.25, suggesting investors were maintaining a relatively constructive outlook despite geopolitical uncertainty and mixed economic signals.

Investors also continued digesting corporate earnings. Mike Dickson, head of research and quantitative strategies at Horizon Investments, said robust earnings growth has remained a key support for equities even as markets navigate uncertainty surrounding interest rates and global events. Dickson noted that stronger-than-expected corporate results have helped sustain investor confidence during the latest reporting season.

Looking ahead, traders are expected to remain focused on upcoming labor-market data, Federal Reserve commentary and developments in energy markets tied to Iran war negotiations.