The S&P 500 and Nasdaq Composite rose Wednesday morning as market participants were encouraged by a slower-than-expected inflation rate increase in April. However, the Dow Jones Industrial Average came under pressure and closed at a negative flatline.
Here's how the market settled on Thursday:
S&P 500 Index (SPY ): +0.45% or +18.47 points to 4,137.64
Dow Jones Industrial Average (DIA ): -0.09% or -30.48 points to 33,531.33
Nasdaq Composite Index (QQQ ): +1.04% or +126.89 points to 12,306.44
In the spotlight, consumer prices rose by 4.9% year-over-year in April, the Labor Department reported Wednesday, which was less than the 5% gain anticipated and the slowest annual rate increase in two years. The annual rate was 5% in March. Month-over-month inflation was in-line was expectations at an increase of 0.4% for April.
Beneath the headline, core CPI -- which excludes food and energy prices -- rose 0.4% monthly and 5.5% from a year ago, both in line with estimates.
Wednesday's report added more optimism that the Fed will pause its rate-hiking campaign at its next monetary policy-setting meeting in June, even through inflation still holds well above the central bank's 2% annual target rate.
On the earnings front, shares of Airbnb (ABNB ) and Twilio (TWLO ) both fell on Wednesday after both companies issued weak forecasts for their respective second quarters.
Rivian Automotive (RIVN ) shares popped on Wednesday after the electric vehicle maker reported a first-quarter loss that was narrower-than-expected. The company also said it is still on track to meet its 2023 production target of 50,000.
Roblox (RBLX ) shares fell after the video game platform reported higher-than-expected losses per share. The company's management said it is looking to "moderate out rate of investment in headcount and infrastructure thereby generating operating leverage."
Carl Icahn's Icahn Enterprises (IEP ) fell as much as 20% on Wednesday after a regulatory filing showed the U.S. Attorney's office for the Southern District of New York contacted the conglomerate seeking information about corporate governance, capitalization, securities offerings, dividends, valuation, marketing material, due diligence and other material.
Alphabet (GOOGL ) shares rose after the tech giant unveiled new details on its generative artificial intelligence tools a its I/O developer conference on Wednesday. The company also showed off the Pixel 7a Android phone, and reveal new AI offerings for its Search business and online office suite.
Looking ahead, market participants will react to earnings reports from companies like Disney (DIS ) and Robinhood (HOOD ) after the bell. Wall Street also anticipates another key inflation reading due out Thursday morning as well as more developments on the U.S. debt ceiling later this week.
