Wall Street’s three major indexes finished Thursday’s choppy session in positive territory as oil prices retreated and diplomatic signals from Washington suggested some forward movement in U.S.-Iran peace negotiations, though significant gaps between the two sides remain unresolved.

The Dow Jones Industrial Average rose 276 points, or 0.55%, to close at a record high of 50,285. The S&P 500 gained 0.17% and the Nasdaq Composite added 0.09%, both recovering from losses earlier in the session to finish modestly higher.

Iran Talks Show Movement but Key Sticking Points Remain

Secretary of State Marco Rubio told reporters there had been “some good signs” in the ongoing talks with Iran, providing a degree of reassurance to investors who have been watching each diplomatic development closely.

However, Rubio also made clear that any deal would be unworkable if Iran moved forward with plans to implement a tolling system in the Strait of Hormuz, the critical waterway through which roughly one fifth of the world’s oil moved before the war began.

A senior Iranian source told Reuters that no agreement has been reached, but acknowledged that gaps between the two sides have been narrowing. Iran’s uranium enrichment program and Tehran’s demand for ongoing control over the strait continue to be the primary sticking points.

Jason Pride of Glenmede said the market’s near-term direction is now squarely tied to news flow from the Iran negotiations rather than corporate earnings, which largely drove sentiment earlier in the quarter.

“Earnings season is largely over. We’re not going to suddenly get any more good surprises out of earnings, which means that market attention is now back to Iran,” Pride said. “The market, on a near-term basis, is going to be finding its way based on rumors or actual announced deals regarding Iran.”

Walmart Warns on Fuel Costs and Consumer Pressure

The session’s most notable corporate story came from Walmart, whose shares tumbled 7.3% after the retail giant forecast second-quarter profit below analyst estimates while keeping its full-year targets unchanged.

Walmart’s CFO John David Rainey said consumers are feeling real pressure from elevated fuel prices and warned that if the high-cost environment persists, the company would expect higher retail price inflation in the second and second-half of the year.

The warning dragged down other consumer staples stocks. Casey’s General Stores fell 3.3% and Costco Wholesale declined 2.2%, as investors interpreted Walmart’s guidance as a broader signal about the health of the American consumer under the current inflation and energy cost environment. 

The consumer staples sector led losses across the S&P 500’s major industry groups, declining 1.6% for the session.

Nvidia Pulls Back After Strong Results

Nvidia shares fell 1.8% as investors took profits following the AI chipmaker’s strong second-quarter revenue forecast and announcement of an $80 billion share repurchase program. 

Despite the pullback in Nvidia specifically, the Philadelphia Semiconductor Index rose 1.3% as investors interpreted the results as broadly positive for the semiconductor sector.

Nvidia’s stock has posted significant gains this year, but the pace of appreciation has slowed as markets begin to factor in the prospect of increasing competitive pressure from Intel and Advanced Micro Devices.

Quantum Computing Stocks Surge on Government Investment News

One of the session’s most dramatic moves came in the quantum computing sector after news emerged that the Trump administration would fund several quantum computing companies in exchange for equity stakes.

IBM surged 12.4% on news of a new venture participating in the program. D-Wave Quantum added 33.4%, Rigetti Computing jumped 30.6%, GlobalFoundries climbed 14.9%, and Infleqtion gained 31.5% in a sector-wide surge that captured investor attention.

Labor Market and Manufacturing Data Add Positive Notes

Weekly jobless claims fell, pointing to continued resilience in the U.S. labor market and giving the Federal Reserve more flexibility to keep its focus on combating inflation rather than shifting toward rate cuts to support employment.

U.S. manufacturing activity rose to a four-year high in May, driven in part by businesses building inventories to guard against potential shortages and price increases tied to the ongoing Iran war. The buildup reflects corporate caution rather than genuine demand strength, but it adds to the near-term economic data picture.

On the downside, Intuit shares plunged 20% after the software company lowered its annual revenue forecast for TurboTax and announced it would cut 17% of its full-time workforce. H&R Block fell 4.8% in sympathy.