U.S. stocks settled mostly lower on Thursday, with the Nasdaq Composite declining 1.25% to 27,193.34 as oil prices rose sharply following fresh Persian Gulf tanker attacks.

Market performance on Thursday

The three major indices closed with mixed results. The Dow Jones edged higher while the S&P 500 and Nasdaq both retreated. The table below summarises Thursday's closing figures:

Most sectors on the S&P 500 closed on a positive note, with energy, consumer staples, and financial stocks recording the biggest gains. Information technology and consumer discretionary stocks were among the worst performers.

Geopolitical and economic backdrop

Donald Trump said he no longer wants a deal with Iran, while noting Tehran was willing to offer "anything to stop" the conflict. On the economic data front, initial jobless claims fell 2,000 to 197,000 in the week ended October 3, coming in below the 200,000 forecast.

Notable stock moves

Several individual stocks saw significant moves during the session:

• PepsiCo Inc. shares rose 3.7% after the company reported better-than-expected third-quarter earnings and revenue.
• Pacira BioSciences Inc. shares jumped 44% after the company announced it will be acquired by Viatris.

Investors are awaiting earnings results from Delta Air Lines Inc. and New Horizon Aircraft Ltd.

CNN Fear & Greed Index remains in fear zone

The CNN Money Fear and Greed Index registered a reading of 38 on Thursday, down from a prior reading of 42, keeping the index in the "Fear" zone. The Fear & Greed Index measures current market sentiment based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greed, operating on the premise that higher fear exerts downward pressure on stock prices while higher greed has the opposite effect.

PepsiCo reported third-quarter net revenue of $25.27 billion, up 5.6% YoY and exceeding the analyst consensus of $24.96 billion. Despite the top-line beat, the company lowered its fiscal 2026 earnings outlook due to persistent margin pressure in its North American operations.

PepsiCo earnings performance

Core earnings per share rose 2% to $2.34, topping the consensus estimate of $2.29. The divergence between strong global revenue growth and the reduced full-year guidance highlights a specific challenge in the company's largest market.

What the numbers show

The data reveals a disconnect between PepsiCo's global sales momentum and its profitability trajectory. While net revenue grew 5.6% YoY and core EPS increased 2%, the decision to lower the fiscal 2026 outlook indicates that margin compression in North America is outweighing volume or pricing gains elsewhere. This suggests that while demand remains robust enough to drive top-line growth, cost structures or competitive dynamics in the U.S. are eroding profit conversion rates.

Commodity and equity movements

Crude oil prices jumped 5.1% to $92.74, driving energy shares up 3%. Gold edged up 0.2% to $4,148.90, while silver fell 1.4% to $59.425 and copper declined 0.7% to $6.6015.

In equities, Pacira BioSciences shares rose 44% to $36.31 following an acquisition announcement by Viatris. Hallador Energy gained 7% to $14.58 after securing six-year capacity agreements with a utility. Helen of Troy Limited climbed 11% to $28.44 on better-than-expected adjusted EPS results.

Conversely, argenx SE dropped 12% to $817.39 after a Phase 3 study failure for one therapy candidate. Sunshine Biopharma Inc fell 37% to $0.44 after pricing a $6 million offering at $0.55 per unit. AngioDynamics, Inc. slid 19% to $11.53 following first-quarter results and a CEO appointment.

Global market snapshot

U.S. indices traded lower, with the Nasdaq Composite falling 0.61% to 27,371.84 and the S&P 500 dipping 0.37% to 7,772.65. The Dow Jones Industrial Average declined 0.39% to 50,978.59.

European markets were mostly lower, with Germany’s DAX falling 0.7% and France’s CAC 40 slipping 0.3%. Asian markets also closed down, led by Japan’s Nikkei 225 dropping 1.42% and India’s BSE Sensex declining 1.44%.

U.S. initial jobless claims fell by 2,000 to 197,000 in the week ending October 3, beating the market estimate of 200,000.