The U.S. stock market extended its bullish trend on Thursday, with the S&P 500 crossing key technical levels following a sharp drop in wholesale inflation. Meanwhile, the Dow Jones continued to rise even as UnitedHealth shares plunged, and the Nasdaq paused for breath after a powerful rally.
🔍 Key Highlights:
- S&P 500 breaks above 5900 amid falling PPI data
- NASDAQ Composite trades sideways after a profit-taking wave
- Dow Jones advances, shrugging off UnitedHealth’s steep decline
📈 S&P 500 Outlook: Inflation Surprise Sparks Breakout
The S&P 500 index (SPX) surged past the 5900 barrier, boosted by a softer-than-expected Producer Price Index (PPI) report. April’s PPI fell 0.5% month-over-month, significantly lower than the 0.2% rise economists anticipated. Core PPI, which excludes food and energy, also posted a surprise 0.4% drop.
The weak inflation data triggered a decline in U.S. Treasury yields, strengthening expectations that the Federal Reserve may lean dovish in the coming months. Retail sales for April rose by a modest 0.1%, falling short of the 0.3% projection when autos are excluded, further supporting the Fed pause narrative.
Sector-wise, defensive plays led the charge, with gains seen in utilities, real estate, and consumer staples—a sign of cautious optimism among investors. If SPX closes above the 5920 resistance, it could extend toward the critical psychological zone near 6000.
💹 Nasdaq Consolidates: Tech Giants Take a Breather
After an extended rally in growth and tech stocks, the Nasdaq 100 (NDX) paused on Thursday, trading slightly higher near the 21,500 mark. The session saw mild profit-taking, although Cisco Systems (CSCO) defied the trend, soaring 5% on strong earnings that beat Wall Street estimates.
Should the Nasdaq manage a daily close above the 21,500 threshold, it may set its sights on the next upside target between 21,950 and 22,000, supported by strong corporate earnings and easing macro concerns.
🏛️ Dow Jones Rises Despite Healthcare Drag
The Dow Jones Industrial Average (DJIA) climbed higher, overcoming heavy pressure from UnitedHealth Group (UNH), which plummeted over 11% after news broke of a criminal investigation related to Medicare fraud.
Despite this headwind, industrials, materials, and energy sectors helped lift the index. If the Dow secures a firm close above 42,300, it could target the next resistance range at 42,700–42,800.
🔮 What to Watch Next:
- Further PPI and CPI trends influencing Fed policy expectations
- Reaction to upcoming retail earnings, especially from consumer discretionary names
- Progress in U.S.–China tariff negotiations and its impact on global sentiment
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