wall street today: Why are S&P 500 and Nasdaq up while Dow Jones down today, and will US stock markets continue to witness wild swings? Biggest gainers, losers, analysts insights, market outlook and what should investors do now
Why is Dow Jones down today while S&P 500 and Nasdaq are up and will US stock markets continue to witness wild fluctuations?
US markets ended the session mixed after a week of heavy gains. The S&P 500 index closed at 7,230.12 points, with an increase of 0.29 percent. Nasdaq closed at 25,114.44 points, up 0.89 percent. Dow Jones index closed at 49,499.27 points, losing 0.31 percent.
Gains in the S&P 500 and Nasdaq pointed to new record closing highs. Both indexes posted gains for the sixth consecutive week. This was the longest weekly streak since October 2024. The market also completed one of its strongest April performances in decades.
Market factors behind the mixed close
Strong corporate earnings played a significant role in the market movement. Companies representing more than two-fifths of the S&P 500 market capitalization announced their quarterly results throughout the week. Analysts now expect annual earnings growth in the first quarter to be 27.8% annually.
Approximately 83 percent of companies beat earnings estimates. About 78 percent exceeded revenue expectations. These results boosted investors’ confidence and caused technology stocks to rise. Crude oil prices fell following reports that Iran had offered talks to Washington. The easing of oil prices helped reduce inflationary pressure concerns. However, due to the closure of the Strait of Hormuz, oil prices remain above $100 per barrel.
Why are S&P 500 and Nasdaq rising while Dow Jones is falling today?
Technology stocks led gains in the S&P 500 and Nasdaq. Apple shares rose approximately 3.3 percent after the company announced strong sales expectations. The company highlighted demand for the iPhone 17 and MacBook Neo. Software companies also gained after Atlassian raised its annual forecast. Atlassian shares rose 29.6 percent. While Salesforce gained 4.1 percent, ServiceNow gained 3.2 percent.
However, the Dow Jones fell due to weakness in energy stocks. Exxon Mobil shares fell 1 percent after profits were hit by disruptions in the Middle East. Chevron fell 1.4 percent despite beating earnings estimates. The Dow has greater exposure to energy compared to the Nasdaq and S&P 500, which explains the mixed performance. Roblox shares fell 18.3 percent after lowering its booking forecast. Reddit rose 13.1 percent on the back of its strong revenue outlook.
Will US stock markets continue to witness wild fluctuations?
Market volatility may continue depending on many factors. The US market is entering a historically weaker six-month period. Since 1945, data show the S&P 500 has risen an average of about 2 percent between May and October. This compares with about 7 percent between November and April. Geopolitical tensions remain a significant risk. Progress towards resolving the US-Iran conflict remains uncertain. The closure of the Strait of Hormuz continues to affect energy markets and inflation expectations.
Economic data also showed that U.S. factory activity expanded for the fourth month in a row. However, the prices paid component rose to its highest level in the last four years. This indicates that inflation pressure may increase. Central banks, including the Federal Reserve, Bank of Japan, European Central Bank and Bank of England, left interest rates unchanged. However, signals indicate that increases may be possible in the future.
US stock market’s biggest gainers and losers
Technology and software stocks showed the best performance of the session. Apple, Atlassian, Salesforce and ServiceNow posted strong gains. Reddit also saw double-digit growth. Energy companies recorded losses. Exxon Mobil and Chevron fell due to profit pressure and geopolitical risks.
Market breadth showed stocks rising rather than falling. Rising stocks on the New York Stock Exchange outperformed falling stocks by up to 1.18. On Nasdaq, advancing stocks outnumbered falling stocks by 1.69 to 1. The S&P 500 posted 45 new 52-week highs and 13 new lows. Nasdaq recorded 132 new highs and 51 new lows.
Top earners
Apple – up about 3.3% following strong sales guidance and demand outlook.
It’s up about 29.6% after Atlassian raised its annual forecast.
Salesforce – gained approximately 4.1% on the strength of the software sector.
ServiceNow — up about 3.2% as enterprise software stocks rose.
Reddit is up nearly 13.1% following optimistic revenue forecasts.
The biggest losers
Roblox – down about 18.3% after lowering its annual booking forecast.
Exxon Mobil – Down nearly 1.0% as disruptions in the Middle East hurt quarterly profit.
Chevron – down about 1.4% despite beating earnings expectations.
Analysts’ predictions and market outlook
Analysts believe the strong earnings season helped markets ignore geopolitical risks. Some experts say markets are focused on earnings growth and technology investment returns. Technology group Magnificent Seven reported strong results for the week. Investors closely watched how investments in artificial intelligence performed.
Analysts say the market reaction indicates strong investor confidence. But they warn that geopolitical risks and inflation signals could increase volatility in the coming months. Oil market leaders also warned that supply risks could increase if the Strait of Hormuz remains closed. If disruptions continue, strategic reserves and existing stocks may not last long.
What should investors do now?
Experts advise investors to focus on long-term goals. Due to ongoing volatility, diversification across sectors remains important. Investors need to follow earnings trends, inflation data and geopolitical developments.
Technology stocks may continue to gain traction due to earnings growth. However, energy and inflation risks may cause fluctuations in the markets. Analysts say disciplined investment and risk management remain key strategies in the current market environment.
FAQ
Q1. Why did Dow Jones fall while other indices rose?
The Dow Jones fell due to losses in energy companies such as Exxon Mobil and Chevron. Technology stocks led to gains in the S&P 500 and Nasdaq, creating divergence among the indexes.
Q2. Will volatility in the stock market continue in 2026?
Analysts expect volatility due to inflation signals, interest rate outlook, geopolitical tensions and seasonal trends. Earnings growth can support markets but global risks can cause frequent market volatility.
