TLDR
- SpaceX shares slid after its IPO lock-up period expired, opening the door for insider selling
- SanDisk and Western Digital beat earnings but issued cautious guidance, dragging chip stocks lower
- Oil climbed back above $80 per barrel on demand optimism and Middle East uncertainty
- Datadog fell despite strong revenue growth and raised full-year guidance
- Investors are growing more selective, punishing weak outlooks even when earnings beat expectations
Wall Street closed mixed on Thursday as investors weighed a wave of earnings reports, rising oil prices and fresh pressure on technology stocks. No single theme dominated, but the session made clear that traders are in a more cautious mood as earnings season winds down.
SpaceX Shares Drop After Lock-Up Expiry
SpaceX shares fell after the company’s IPO lock-up period expired. That expiry lets early investors, employees and insiders sell shares they were previously barred from selling.
Lock-up expirations do not change a company’s business. But they increase the number of shares that could hit the market, which often creates short-term selling pressure.
Analysts still view SpaceX as a major long-term growth story, pointing to its satellite internet business, rocket launch services and the Starship programme. Investors are now watching trading volumes to see if selling pressure fades in the coming weeks.
Chip Stocks Fall on Weak Guidance From SanDisk and Western Digital
The Nasdaq underperformed the broader market as technology stocks came under pressure. Memory storage companies SanDisk and Western Digital were at the center of the weakness.
Both companies reported quarterly results that beat analyst expectations. However, their forward guidance was cautious, and that was enough to send their share prices sharply lower.
The disappointing outlooks also dragged on the wider semiconductor sector. Some investors are growing concerned that parts of the AI hardware supply chain could see slower growth after a strong run.
Many analysts still see artificial intelligence as a long-term growth driver. But the session showed that investors are now paying close attention to valuations and the quality of future earnings, not just headline results.
Oil Climbs Back Above $80 Per Barrel
Crude oil prices rose back above $80 per barrel after a period of weakness. The move was supported by better-than-expected global demand data and continued uncertainty in the Middle East.
Markets are keeping a close eye on US-Iran negotiations. Any disruption to shipping through the Strait of Hormuz could tighten global oil supplies quickly.
Higher oil prices are good news for energy producers. But they raise costs for airlines, transport companies and manufacturers, and they keep inflation concerns alive heading into the second half of the year.
Datadog Drops Despite Strong Results
Datadog was one of the more surprising stories of the session. The cloud monitoring company reported strong revenue growth and raised its full-year guidance, yet its share price fell.
The reaction reflected how high investor expectations have become this earnings season. Many software and AI companies are trading at premium valuations, and the market is now demanding strong future growth rates alongside solid current results.
The move sent a clear message: strong earnings alone are no longer enough when the bar is already set very high.
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