The Dow Jones Industrial Average and other major stock indexes dropped Thursday. Federal Reserve Chairman Jerome Powell cautioned that inflation could be more volatile in the years ahead, even as one metric showed a decline in prices. Meanwhile, UnitedHealth plunged after reports of a criminal probe, while artificial intelligence stock CoreWeave tumbled in the wake of its earnings report on the stock market today.
After the opening bell, the Dow Jones Industrial Average fell 0.5%. The S&P 500 lost 0.4% and the tech-heavy Nasdaq composite declined 0.8%. (Click here for Thursday's after-hours market action.)
The 10-year Treasury yield dipped to 4.48% early Thursday. And oil prices fell sharply, as West Texas Intermediate futures traded around $61.50 per barrel.
Among exchange traded funds, the Invesco QQQ Trust moved down 0.8%, while the SPDR S&P 500 ETF fell 0.4% after the open.
Late Wednesday, the Wall Street Journal reported the Justice Department has been investigating UnitedHealth since last summer for possible Medicare fraud. The specific criminal allegations are unclear, but likely focus on Medicare Advantage billing practices. UnitedHealth has faced claims that questionable Medicare Advantage claims cost taxpayers billions of dollars.
UnitedHealth stock plunged more than 16% in response during morning trading.
And new AI stock CoreWeave tumbled 8% after the company predicted higher-than-expected capital spending during fiscal 2025.
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Stock Market Today: Powell Speech
On the economic front, Fed Chair Powell said in prepared remarks, "Higher real rates may also reflect the possibility that inflation could be more volatile going forward than in the inter-crisis period of the 2010s. We may be entering a period of more frequent, and potentially more persistent, supply shocks — a difficult challenge for the economy and for central banks."
Meanwhile, the producer price index, known as PPI, dropped 0.5% in April, far below the expected 0.2% rise. Year over year, the PPI rose 2.4%, meeting estimates. Core wholesale inflation, excluding food and energy, declined 0.4% on the month, with a year-over-year rise of 3.1%. It was expected to increase 0.3% on the month, with a year-over-year rise of 3%, according to Econoday estimates.
Concurrently, the Labor Department's initial jobless claims edged higher to 229,000 vs. 228,000 in the previous week, meeting estimates.
Finally, U.S. retail sales rose 0.1% in April, meeting estimates. Excluding automobiles, sales rose 0.1%, below the 0.3% Econoday estimate.
Elsewhere, key earnings movers Thursday include Cisco Systems, Alibaba, Deere and Walmart.
Cisco stock jumped more than 5%, while Alibaba shares sold off nearly 7%. Deere stock climbed 5%, as shares of Walmart declined 4% in morning trading.
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Dow Jones Falls
On Wednesday, the Dow Jones Industrial Average declined 0.2%, or 89 points, while the S&P 500 inched higher and the Nasdaq advanced 0.7%.
Due to ongoing stock market strength, now is an important time to read IBD's The Big Picture column for how to handle the current market conditions and to track the updated exposure level.
Among the best companies to watch in the current stock market are Booking, Commvault, Robinhood and Roblox.
Along with Apple and Nvidia, Dow Jones components also making notable moves this week were Amazon.com and Microsoft.
Check out IBD MarketSurge's "Breaking Out Today" list for top growth stocks that are moving above correct buy points. Investors also can find potential breakouts on the "Near Pivot" list. To find additional stock ideas, check IBD Stock Lists like IBD 50, Big Cap 20 and Stocks Near A Buy Zone.
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Dow Jones Stocks: Microsoft Hits Buy Point
Shares of Dow Jones component Microsoft have shot up over the last couple weeks, bullishly retaking their 200-day line for the first time since Jan. 29 and clearing a 448.38 buy point in a cup base, according to MarketSurge chart analysis. Microsoft stock eased 0.3% Thursday.
Outside the Dow, Booking is trying to break out past a 5,282 buy point in a double-bottom base. Booking stock rose 0.3% in morning action.
Recent IBD Stock Of The Day Commvault is squarely in buy range above a 174.58 double-bottom entry. Commvault shares dropped 0.7% early Thursday.
IBD Leaderboard watch list stock Robinhood has cleared an aggressive alternate entry of 51.07 in recent sessions and is approaching a 66.91 buy point in an abnormally deep cup base, according to IBD MarketSurge chart analysis. Robinhood shares declined 2.5% Thursday.
Finally, IBD SwingTrader stock Roblox is breaking out past a 74.24 cup-with-handle entry and out of buy range, with a 3.2% rally Wednesday. Roblox stock edged lower Thursday.
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Stock Market: Companies To Watch
These are four stocks in or near buy zones in Thursday's stock market, including a Dow Jones leader.
| Company Name | Symbol | Correct Buy Point | Type Of Buy Point |
|---|---|---|---|
| Boeing | 184.40 | Double bottom | |
| Robinhood | 66.91 | Cup base | |
| Roblox | 74.24 | Cup with handle | |
| Commvault | 174.58 | Double bottom |
Source: IBD Data as of May 13
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Dow Jones Leaders: Amazon, Apple, Nvidia
Magnificent Seven stocks continue to rebound from their recent lows as Wall Street reacts to more optimism after President Trump's tariffs sent them reeling. One of them, Dow Jones component Amazon, is building a cup base with a 242.52 buy point. Amazon stock lost 2.6% in morning action on Thursday.
IPhone maker Apple is back above its 50-day moving average following big gains in recent sessions. Apple slipped 0.6% early Thursday.
During Wednesday's bullish gains, Nvidia advanced further above its long-term 200-day moving average, which was a key resistance level. Nvidia stock dropped 1.7% Thursday.
Finally, Tesla skidded more than 3% in early action Thursday, threatening to break its five-session winning streak. Led by Chief Executive Elon Musk, the electric-vehicle maker remains around 29% off its record high of 488.54, reached on Dec. 18.
Be sure to follow Scott Lehtonen on X at @IBD_SLehtonen for more on growth stocks, the Dow Jones Industrial Average and the stock market today.
