Stock Market Today - Stocks Pull Back as S&P 500 Falls to 6,605, Oracle Sinks 5%, GDP Rebounds 3.8%

Indices retreat as strong GDP and jobless claims complicate Fed outlook

U.S. equities lost ground on Thursday as the Dow Jones Industrial Average (^DJI) slipped 123 points to 45,998 (-0.27%), the S&P 500 (^GSPC) shed 32 points to 6,605 (-0.49%), and the Nasdaq Composite (^IXIC) fell 0.45%. The pullback extended a two-day losing streak, as investors digested robust economic data that could weaken the case for more Federal Reserve rate cuts this year. Weekly jobless claims dropped to 218,000, a notable decline from 232,000, while second-quarter GDP was revised sharply higher to 3.8% from the previous -0.6%. The stronger growth picture, paired with healthier labor trends, added to skepticism about whether the Fed can deliver another two cuts before year-end. Treasury yields jumped, with the 10-year hitting 4.2%, pressuring growth and technology shares.

Oracle (ORCL) faces AI skepticism and sharp sell-off

Oracle (NYSE:ORCL) continued its steep slide, plunging 5.27% to $292.20, now down over 10% from recent highs. A fresh Sell rating from Redburn, which assigned a $175 price target, argued the market is overestimating Oracle’s cloud revenue tied to AI infrastructure. Analysts warned that Oracle’s large AI contracts may be concentrated and risky rather than representing broad-based adoption. The stock’s decline follows its $18 billion bond sale earlier in the week, fueling concerns that rapid expansion into AI data centers may strain capital structure. Oracle’s weakness weighed heavily on the Nasdaq, given its outsize role in fueling the recent AI-driven rally.

Intel (INTC) climbs on Apple investment talks but structural hurdles remain

Shares of Intel (NASDAQ:INTC) surged 6.25% to $33.17 after reports that Apple (NASDAQ:AAPL) is in discussions to invest in the struggling chipmaker. The news follows a $5 billion commitment from Nvidia (NASDAQ:NVDA) and a $9 billion U.S. government injection. However, Bernstein’s Stacy Rasgon cautioned that Intel’s core problem is technological capability, not capital. With Intel Foundry Services losing $13 billion in FY2024 and lagging far behind Taiwan Semiconductor (NYSE:TSM), any Apple stake is unlikely to reverse its competitive deficit quickly. Still, Intel’s stock rebound reflects renewed market confidence in its turnaround bid, supported by strategic partnerships and external capital inflows.

Costco (COST) earnings eyed amid consumer caution

Costco Wholesale (NASDAQ:COST) shares slipped 0.84% to $937.30 ahead of quarterly earnings. Analysts expect revenue of $86.03 billion and EPS of $5.82, with same-store sales projected to grow 6.2% year-over-year. U.S. comps are expected to rise 6.1% and Canadian sales 6.8%. While demand for value remains resilient, competition from Amazon (NASDAQ:AMZN)—which expanded its same-day delivery program—has pressured Costco alongside peers BJ’s (NYSE:BJ) and Dollar General (NYSE:DG). Investors will watch for margin commentary as tariffs and consumer trade-down behavior continue shaping retail dynamics.

CarMax (KMX) sinks after earnings miss

The auto sector showed cracks as CarMax (NYSE:KMX) plummeted nearly 20% to $45.79, its worst day since 2022, after reporting Q2 EPS of $0.64 versus expectations of $1.03. Revenue came in at $6.59 billion, far below the $7.05 billion consensus. CEO Bill Nash described conditions as “challenging,” citing affordability issues, high interest rates, and weaker used-car demand. The earnings disappointment underscores continued consumer stress in discretionary big-ticket purchases, a warning sign for broader retail sentiment.

Lithium Americas (LAC) extends explosive rally

Lithium Americas (NYSE:LAC) surged another 17.55% to $7.07, following a near doubling the previous day. The stock’s surge is tied to reports that the Trump administration is negotiating a stake in the company’s Thacker Pass project in Nevada, which could become the largest lithium mine in the Western Hemisphere. Phase one is expected to produce 40,000 tons annually starting in 2028, enough to supply 800,000 electric vehicles. GM (NYSE:GM) has already invested $625 million, while the U.S. government seeks purchase guarantees and even retains rights to seize the project under certain conditions. This marks a turning point for U.S. supply chain independence in EV battery metals, and LAC has become the market’s speculative proxy for government-backed lithium supply.

AI infrastructure bets: CoreWeave (CRVW) signs $6.5B deal with OpenAI

Cloud specialist CoreWeave (NASDAQ:CRVW) traded at $132.47 (-0.70%) after rebounding from premarket losses when it announced a fresh $6.5 billion agreement with OpenAI. This expands total joint deals between the two companies to $22.4 billion, cementing CoreWeave as a key GPU infrastructure provider for AI model training. The firm’s stock has been volatile, swinging more than 6% intraday, as investors weigh capital intensity against long-term demand. The agreement highlights that capital-heavy AI infrastructure plays remain critical to the AI supply chain despite market concerns about overvaluation.

IBM (IBM) gains on quantum computing breakthrough

IBM (NYSE:IBM) rose 5.10% to $281.17 after HSBC (NYSE:HSBC) reported a 34% reduction in trading errors using IBM’s Quantum Heron chip integrated with AI models. HSBC claimed this is the first empirical demonstration of quantum computing delivering measurable financial value, particularly in bond trading. The breakthrough could provide IBM with a competitive edge in quantum commercialization, offering real-world case studies that validate billions in R&D spending.

Macro backdrop: Fed divisions, yields, and shutdown risk

The Federal Reserve’s path remains clouded by internal division. Chicago Fed’s Austan Goolsbee and Kansas City Fed’s Jeff Schmid signaled hesitation on further rate cuts due to inflation concerns, while Governor Stephen Miran argued the current 4.0–4.25% range is excessively restrictive. This debate, combined with strong GDP and labor data, lifted Treasury yields and fueled volatility. Meanwhile, Washington faces a potential government shutdown as the Office of Management and Budget instructed agencies to draft plans for permanent job reductions in non-essential programs. The prospect of mass federal layoffs adds political risk that could spill into markets.

Crypto spillover pressures equities

Bitcoin (BTC-USD) fell 2.11% to $111,213, dragging crypto-linked stocks lower. Robinhood (NASDAQ:HOOD) slipped 2.15% and Coinbase (NASDAQ:COIN) declined 2.93% amid $511 million in crypto liquidations over 24 hours. The liquidity drain from the Treasury General Account’s recent T-bill issuance has further pressured risk assets, highlighting cross-asset fragility between equities and digital currencies.

The S&P 500 (^GSPC) slipped to 6,605.22 (-0.49%), the Dow (^DJI) finished at 45,998.12 (-0.27%), and the Nasdaq (^IXIC) eased 0.45%, as a 3.8% GDP rebound and jobless claims down to 218,000 fueled higher yields at 4.2% and dimmed hopes of more Fed cuts.

The session exposed clear winners and losers. Oracle (ORCL $292.20, -5.27%) unraveled as its AI cloud story hit skepticism, while CarMax (KMX $45.79, -19.74%) collapsed on weak earnings. By contrast, Intel (INTC $33.17, +6.25%) surged on Apple investment talks, IBM (IBM $281.17, +5.10%) proved its quantum leap with HSBC, and Lithium Americas (LAC $7.07, +17.55%) doubled in two days as U.S. backing for its Nevada mine reshaped sentiment.

With valuations stretched and rates climbing, broad indices remain a Hold. Selective conviction stands out: Buy IBM, speculative Buy LAC, and Sell ORCL into weakness.

That's TradingNEWS