S&P 500 slips from record high as oil rebounds

Investors continued to monitor developments surrounding potential negotiations between the United States and Iran.

The benchmark index fell 0.4%, pressured by declines in technology and semiconductor stocks, including Amazon, Broadcom and Micron Technology.

The tech-heavy Nasdaq Composite declined 0.2% after also reaching a new intraday record earlier in the session, while the Dow Jones Industrial Average dropped 356 points, or 0.7%.

Apple shares touched a new all-time intraday high of $290.33 on Thursday, surpassing the previous peak of $288.62 reached in December 2025.

The stock had already posted its first record closing high since December in the prior session, ending Wednesday at $287.51.

Momentum indicators suggest the stock may be approaching overbought territory.

Apple’s 14-day relative strength index stood at around 71.8, according to FactSet data, with readings above 70 typically viewed by traders as overbought conditions.

Oil prices rebound

Oil prices recovered after falling sharply earlier in the session amid optimism around a possible diplomatic breakthrough between Washington and Tehran.

West Texas Intermediate crude futures rose about 1% to trade above $95 per barrel, while Brent crude climbed slightly to above $101 a barrel.

Markets had rallied on Wednesday after Axios reported that the United States and Iran were nearing a one-page, 14-point memorandum of understanding aimed at ending the conflict and laying the groundwork for broader nuclear negotiations.

The report cited US officials and other sources familiar with the discussions.

Inflation expectations tick higher

Fresh economic data showed US consumers expect inflation pressures to remain elevated in the near term, though some price categories showed signs of easing.

According to the Federal Reserve Bank of New York’s monthly Survey of Consumer Expectations, one-year inflation expectations rose to 3.6% in April from 3.4% in March.

Expectations for inflation over three- and five-year horizons remained unchanged at 3.1% and 3%, respectively.

Consumers, however, anticipated slower increases in gasoline and food prices. Expected gasoline price growth fell sharply to 5.1% from 9.4%, while food inflation expectations eased to 5.2% from 6%.

Labour market remains resilient

Additional labour market data released Thursday pointed to continued resilience in the US economy.

Initial jobless claims rose by 10,000 to 200,000 for the week ended May 2, according to the Labor Department, below economists’ expectations of 206,000.

Continuing claims fell by 10,000 to 1.77 million, suggesting layoffs remain limited despite recent announcements of job cuts across several large companies.

The latest data reinforced the view that the labour market remains relatively stable even as investors assess the broader impact of higher energy prices, inflation risks, and geopolitical uncertainty.