The U.S. stock market retreated from record highs by midday Thursday as a 4% surge in Brent crude revived the Middle East risk premium, while SanDisk Corp. (NASDAQ:SNDK) delivered guidance that fell short of the blowout investors had hoped for, failing to spark a broader tech rally.

Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz. President Donald Trump says negotiations are open-endedm while Houthi forces attacked Saudi deployments in Yemen overnight.

That was enough to snap a week-long slide in energy prices and put a bid back under the supply-risk trade. Yet, equity investors largely shrugged and rotated rather than de-risked.

• West Texas Intermediate crude jumped 3.4% to $77.74 a barrel, clawing back part of a 7% weekly loss.
• Brent crude climbed 3.9% to $82.47 a barrel, while wholesale gasoline rose 3.9% and heating oil advanced 2.8%.
• The S&P 500 slipped 0.3% to 7,704.57, holding just below Tuesday’s record.
• The Dow Jones Industrial Average was the laggard, down 0.7% to 53,951 after closing at a record on Wednesday.
• The Nasdaq 100 fell 0.4% to 29,366. The Russell 2000 held up best, easing 0.1% to 3,015.

On The Macro Front

Initial jobless claims rose just 1,000 to 199,000, undershooting forecasts of 202,000 and reinforcing the picture of a tight labor market. Friday’s nonfarm payrolls report is expected to show 82,000 jobs added.

Markets now price roughly a 58% chance of a Federal Reserve rate hike in September, down from 68% on Monday. A Financial Times report said Chair Kevin Warsh is prepared to raise rates next month if inflation prints run hot.

Gold was little changed at $4,242 an ounce, holding near a seven-week high after a 4% surge on Wednesday as traders pared Fed tightening bets. Bitcoin (CRYPTO: BTC) was unchanged at $64,500.

Thursday’s Performance In Major U.S. Indices

Index	Last	% Change
S&P 500	7,704.57	-0.25%
Dow Jones	53,951	-0.73%
Nasdaq 100	29,366	-0.41%
Russell 2000	3,015.37	-0.13%

According to the Benzinga Pro platform:

• The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.3%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) fell 0.7%.
• The Invesco QQQ Trust (NASDAQ:QQQ) declined 0.4%.
• The iShares Russell 2000 ETF (NYSE:IWM) edged down 0.2%.

SanDisk Trims Losses

Shares of SanDisk were down 5% during midday trading, trimming heavier premarket losses.

Fiscal fourth-quarter revenue came in at $8.97 billion surging 372% year-over-year and 51% sequentially, beating the roughly $8.42 billion consensus by 6.5%, while non-GAAP EPS of $39.25 topped the $34.45 estimate by 13.5%.

Gross margin hit a record 84.6% and data center revenue more than doubled sequentially, up 103%.

The problem was the outlook. Sandisk guided fiscal first-quarter revenue to $10.3 billion to $10.8 billion against a $11.16 billion consensus, and pegged fiscal 2027 gross margin at 83% to 85%.

Peer Western Digital Corp. (NASDAQ:WDC) was down 10%, also trimming losses.

Energy Stocks Edge Higher, Software Sector Decline Resumes

The Energy Select Sector SPDR Fund (NYSE:XLE) was the standout, rising 1.3% as crude rebounded, while the Real Estate Select Sector SPDR Fund (NYSE:XLRE) brought up the rear with a 0.7% decline.

Elsewhere, the Materials Select Sector SPDR Fund (NYSE:XLB) and the Financial Select Sector SPDR Fund (NYSE:XLF) each fell 0.6%, and the Utilities Select Sector SPDR Fund (NYSE:XLU) slid 0.5%.

The Communication Services Select Sector SPDR Fund (NYSE:XLC) was the only other sector in the green, up 0.1%, while the Technology Select Sector SPDR Fund (NYSE:XLK) held its ground with a 0.1% dip.

Beneath the sector surface, the split was sharper.

The VanEck Oil Services ETF (NYSE:OIH) jumped 3.0% and the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) gained 1.1%, with the VanEck Semiconductor ETF (NASDAQ:SMH) adding 1.0%.

On the other side, the iShares Expanded Tech-Software Sector ETF (BATS:IGV) and the iShares U.S. Home Construction ETF (BATS:ITB) both dropped 2.2%, while the U.S. Global Jets ETF (NYSE:JETS) fell 2.0% as higher jet fuel costs bit into airline margins.

Thursday Movers

Leading the Russell 1000 higher, Insmed Incorporated (NASDAQ:INSM) soared 31.1% after reporting $309.2 million of second-quarter BRINSUPRI revenue, up 49% sequentially, and lifting peak sales estimates for the drug above $7 billion and for TPIP above $6 billion.

Chime Financial Inc. (NASDAQ:CHYM) rallied 26.3% after posting a second straight quarter of positive GAAP net income, with revenue up 27% to $669.8 million and full-year guidance lifted to $2.73 billion to $2.75 billion.

The fintech also said CFO Matt Newcomb will step down effective Friday.

Paycom Software Inc. (NYSE:PAYC) surged 25.4% after second-quarter EPS of $2.78 crushed the $2.28 consensus on revenue of $531.2 million, prompting BTIG to lift its price target to $230 from $160.

CACI International Inc (NYSE:CACI) jumped 22.0% after fiscal fourth-quarter EPS of $8.91 beat by $1.59 and the defense IT contractor guided fiscal 2027 EPS to $32.96-$33.86 against a $28.16 consensus, with revenue of $10.65 billion to $10.85 billion versus $9.55 billion expected.

SiTime Corp. (NASDAQ:SITM) climbed 19.8% after second-quarter revenue more than doubled to $157.4 million from $69.5 million a year earlier, with non-GAAP EPS of $2.34 and gross margin of 67.1% on surging AI inference timing demand.

At The Other End of the Tape…

UWM Holdings Corp. (NYSE:UWMC) collapsed 34.5% after posting a second-quarter loss of 23 cents per share against a 7-cent consensus, announcing a $400 million rights offering covering up to 200 million new Class A shares, and disclosing that total equity fell to $985.3 million from $1.6 billion.

HubSpot Inc. (NYSE:HUBS) tumbled 21.1% despite adjusted EPS of $3.26 beating by 24 cents on revenue of $911.7 million, as full-year revenue guidance of $3.678 billion to $3.686 billion landed below the $3.71 billion consensus.

AppLovin Corp. (NASDAQ:APP) cratered 19.9% after second-quarter revenue of $1.92 billion missed the $1.94 billion estimate and third-quarter guidance of $2.07 billion came in light. Piper Sandler downgraded the stock to Hold and slashed its target to $385 from $665.

Honeywell Aerospace Inc. (NASDAQ:HONA) sank 19.3% to its lowest level since spinning out of Honeywell in June, after missing with adjusted EPS of $1.87 versus $2.13 expected in its first quarterly report as a standalone company and cutting 2026 organic growth guidance to 4%-5% on supply chain constraints.

Shift4 Payments Inc. (NYSE:FOUR) dropped 18.5% even after beating on both lines, with second-quarter EPS of $1.32 topping estimates by 8 cents and revenue growing 34% year-over-year to come in 4% ahead of consensus, because full-year revenue and EPS guidance both landed short of Wall Street’s forecasts.

Consumer names were not spared. Dutch Bros Inc. (NYSE:BROS) fell 17.6% despite adjusted EPS of 33 cents on $550.85 million of revenue beating estimates and a raised full-year outlook, as investors zeroed in on cost pressures. 

Celsius Holdings Inc. (NASDAQ:CELH) slid 17.3% after revenue of $817.9 million missed the $872.6 million estimate and namesake-brand sales fell about 11.7% year-over-year, offsetting a 55.7% jump in Alani Nu retail sales.

On the brighter side of the print calendar, Datadog Inc. (NASDAQ:DDOG) delivered EPS of 65 cents against 58 cents expected, Warner Bros. Discovery Inc. (NASDAQ:WBD) swung to a 6-cent profit versus a 14-cent loss estimate, and Constellation Energy Corp. (NASDAQ:CEG) earned $2.55 against $2.41 expected.

Thursday’s Russell 1000 Top Gainers

Name	% change
Insmed Incorporated	+31.12%
Chime Financial, Inc.	+26.33%
Paycom Software, Inc.	+25.42%
CACI International Inc	+21.96%
SiTime Corporation	+19.76%

Thursday’s Russell 1000 Top Losers

Name	% change
UWM Holdings Corporation	-34.51%
HubSpot, Inc.	-21.07%
AppLovin Corporation	-19.86%
Honeywell Aerospace Inc.	-19.34%
Shift4 Payments, Inc.	-18.53%

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