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WALL ST TAKES A PIT STOP: US-IRAN PEACE TALKS INCH ALONG, APRIL JOBS NUMBERS ON TAP

Wall Street reversed earlier gains on Thursday, easing back from record highs as investors took some chips off the table ahead of April employment numbers due on Friday.

Optimism over signs that Washington and Tehran were nearing agreement on a deal that would open the Strait of Hormuz while leaving key issues unresolved was clouded by a report from the Wall Street Journal that Iran wouldn't allow the U.S. to reopen the waterway with "an unrealistic plan."

The S&P 500 .SPX lost 0.38%, while the Nasdaq Composite .IXIC lost 0.13%. The Dow Jones Industrial Average .DJI fell 0.63%.

Nine of the 11 major sectors in the S&P 500 fell, with only tech .SPLRCT and communication services .SPLRCL closing green, albeit barely. Barely was enough, however, for both sectors to register record closing highs.

Chip stocks .SOX were clear laggards, ending the day down 2.7% and trimming year-to-date gains to 57.6%.

Intel INTC.O and Advanced Micro Devices AMD.O slid 3.0% and 3.1%, respectively. SOX .SOX constituents Micron Technology MU.O, Applied Materials AMAT.O, Marvell Technology MRVL.O and ARM Holdings ARM.O shed between 3.1% and 10.1%.

Nvidia NVDA.O, on the other hand, sailed through the session unscathed, logging a 1.8% gain.

Meanwhile, the S&P Software & Services index .SPLRCIS, battered in recent weeks on AI disruption fears, handily outperformed, rising 2.7% and bringing its loss down to 15.0% so far in 2026.

In today's economic data, a negligible uptick in jobless claims belied Challenger data, which showed last month was the third-worst April for layoffs in 15 years.

The Challenger report also added fodder for those who fear AI disruption. The technology led all reasons for job cuts for the second month in a row, accounting for 26% of the total.

Alongside yesterday's ADP and JOLTS reports, the stage has been set for Friday's April jobs report, which analysts expect will show 62,000 job adds - a 65% drop from March - unemployment standing pat at 4.3%, and weekly/annual wage growth of 0.3% and 3.8%, respectively.

Here's your closing snapshot:

(Stephen Culp)

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