US Equity Indexes Mixed as Nvidia Results Fail to Outweigh Surge in Treasury Yields Following Strong Macro Data

US equity indexes traded mixed while government bond yields jumped after Nvidia's NVDA strong results lifted the technology sector and a surprise improvement in manufacturing conditions accompanied declining jobless claims.

The tech-heavy Nasdaq Composite climbed 0.8% to 16,937.7 after midday on Thursday. The S&P 500, of which Nvidia is one of the major constituents, rose 0.2% to 5,319.2. However, the Dow Jones Industrial Average fell 0.7% to 39,402.1.

Financials, industrials, and materials led the decliners intraday.

Nvidia rose 11% intraday, the top gainer on the S&P 500 and the Nasdaq, after the poster child for the artificial intelligence industry reported market-topping fiscal Q1 earnings and sales.

The May flash reading of manufacturing conditions from S&P Global rose to 50.9 from 50.0 in April, versus the 49.9 anticipated in a survey compiled by Bloomberg as of 7:35 am ET. The index suggests expansion, which is in line with the Philadelphia Fed manufacturing index but in contrast with the Empire State manufacturing index's contraction. Notably, the index measuring services conditions climbed to a 12-month high of 54.8 in May from 51.3 in April, compared with expectations for a decline to 51.2.

US initial jobless claims fell to 215,000 in the week ended May 18 from an upwardly revised 223,000 in the previous week, compared with expectations for a drop to 220,000 in a survey of analysts compiled by Bloomberg as of 7:35 am ET.

Minutes from the Federal Open Market Committee meeting on Wednesday implied reluctance on any near-term rate cuts as inflation remains relatively high, a note from D. A. Davidson said. The minutes showed "various participants mentioned a willingness to tighten policy" if necessary.

"At what point is the Fed willing to not just delay rate cuts, but potentially consider reengaging with additional rate hikes?," Stifel Chief Economist Lindsey Piegza said in a note Thursday. "In May, [Fed Chair Jerome] Powell was given many opportunities to reintroduce the possibility of rate hikes, but he did not take the bait at any turn. The minutes suggest at least some, however, may be contemplating this less-than-desirable scenario."

The US 10-year Treasury yield jumped 5.5 basis points to 4.49%, and the two-year surged 6.2 basis points to 4.94%.

In company news, the US Justice Department and 30 state and district attorneys general sued Ticketmaster-parent Live Nation LYV Thursday, saying the company has a monopoly in ticketing and concert promotion. Its shares slumped nearly 8% intraday.

Boeing BA faces a "long road" to ensuring safe manufacturing of airplanes, Federal Aviation Administration Administrator Michael Whitaker told ABC News in an interview Thursday. Shares of the firm dropped nearly 7% intraday, the steepest decliner on the Dow.

West Texas Intermediate crude oil fell 1.1% to $76.74 a barrel.

Gold slumped 2.1% to $2,343.21 an ounce, and silver sank 3% to $30.56.