Wall Street closed sharply higher on Thursday, driven by communication services and industrial stocks. Investor sentiment was upbeat despite surging crude prices as solid corporate earnings and fresh economic data shaped inflation and growth outlook. All three benchmark indexes ended in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 1.6%, or 790.33 points, to close at 49,652.14. Twenty-two components of the 30-stock index ended in positive territory, while eight ended in negative.

The tech-heavy Nasdaq Composite added 219.07 points, or 0.9%, to close at 24,892.31.

The S&P 500 gained 73.05 points, or 1%, to close at 7,209.00. Seven of the 11 broad sectors of the benchmark index closed in the red. The Communication Services Select Sector SPDR (XLC), the Industrials Select Sector SPDR (XLI) and the Utilities Select Sector SPDR (XLU) advanced 4%, 2.8% and 2.6% respectively, while the Technology Select Sector SPDR (XLK) declined 0.6%.

The fear gauge CBOE Volatility Index (VIX) decreased 10.2% to 16.89. A total of 17 billion shares were traded on Thursday, lower than the last 20-session average of 17.7 billion. Advancers outnumbered decliners by a 4.1-to-1 ratio on the NYSE, and by a 2.8-to-1 ratio on the Nasdaq.

Wall Street Rallies as Earnings Strength Outweighs Oil Shock

Wall Street ended April on a strong note. Investor sentiment was lifted by a wave of solid corporate earnings that reassured markets about business resilience despite global uncertainty.

Concerns over a war-driven oil supply shock had earlier pushed crude prices to multi-year highs, unsettling investors. However, easing oil prices toward the end of the session helped temper inflation fears and restore confidence. At the same time, fresh economic data pointed to steady U.S. growth, easing worries about a slowdown and reinforcing expectations that the economy remains on a stable footing. Markets largely looked past geopolitical tensions, focusing instead on improving fundamentals and earnings strength. Sectors such as communication services and industrials led the rally, reflecting renewed optimism about both consumer demand and business activity.

Consequently, shares of The Walt Disney Company (DIS Quick QuoteDIS - Free Report) and 3M Company (MMM Quick QuoteMMM - Free Report) added 2.4% and 1.8%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Monthly Roundup

In April, the Nasdaq Composite, the S&P 500 and the Dow Jones Industrial Average advanced 15.3%, 10.4% and 7.1%, respectively. The S&P 500 and the Nasdaq Composite capped their biggest monthly gains in years. On the whole, April stood out as a month where resilient earnings, stabilizing energy markets and reassuring macroeconomic signals combined to drive a broad-based recovery in equities.

Oil Prices Retreat After Spike on Middle East Tensions

Global oil prices eased after climbing to four-year highs above $126/barrel earlier on Thursday as fears grew that a possible U.S-Iran military escalation could disrupt Middle East supply and hurt the global economy. Brent Crude touched $126.41 before settling at $114.01, while WTI Crude fell to $105.07. President Trump was set to receive a briefing on potential fresh military strikes on Iran aimed at pushing negotiations.

Economic Data

For the week ending April 25, initial jobless claims came in at 189,000, a decrease of 26,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 214,000 to 215,000. The four-week moving average was 207,500, a decrease of 3,500 from the previous week's revised average. The previous week's average was revised up by 250 from 210,750 to 211,000.

For the week ending April 18, continuing claims came in at 1,785,000, a decrease of 23,000 from the previous week's revised level. The previous week's level was revised down by 13,000 from 1,821,000 to 1,808,000. The four-week moving average was 1,797,250, a decrease of 11,750 from the previous week's revised average. The previous week's average was revised down by 3,250 from 1,812,250 to 1,809,000.

Per the Bureau of Economic Analysis, PCE inflation for March was at 0.7%, after rising 0.4% in February. Core PCE rose 0.3%, after rising 0.4% in February. Personal Income gained 0.6% in March after remaining unchanged in February, while Personal Spending rose 0.9% after jumping 0.6% in February. Personal Savings Rate remained unchanged at 4%.

GDP Advance Estimate for first-quarter 2026 came in at 2%, after the economy grew 0.5% in fourth-quarter 2025.