US stocks open higher: Dow jumps 0.4%, Nasdaq edges higher

• Oil prices fell significantly: WTI crude dropped 4% to $91/barrel and Brent crude declined 3% to $97/barrel, both moving below $100 as potential US-Iran agreement raises hopes for eased supply disruptions
• Strong corporate earnings boosted sentiment: DoorDash jumped 8% on improved Q2 guidance while Fortinet surged 19% after raising its full-year billings outlook
• Labor market remains tight: Initial jobless claims rose to 200,000 (below 205,000 forecast) while continuing claims fell to 1.77 million, a two-year low, indicating limited layoffs despite job cut announcements from Meta and Nike

Market Summary: US Equities Rise on Easing Oil Prices and Iran Deal Optimism

Market Performance:

US stocks opened higher on Thursday, May 7, 2026, with the Dow Jones Industrial Average climbing 174 points (+0.4%), while the S&P 500 and Nasdaq Composite both gained 0.1%. Markets built on the previous session's momentum when the S&P 500 and Nasdaq reached record highs.

Key Drivers:

*Oil Price Decline:* Crude prices fell for a second consecutive day, with WTI dropping 4% to approximately $91/barrel and Brent declining 3% to around $97/barrel—both falling below the $100 threshold. The decline reflects expectations of reduced supply disruptions and inflationary pressures.

*Geopolitical Developments:* Growing optimism surrounding a potential US-Iran agreement boosted investor sentiment. According to Axios, US officials are nearing a one-page, 14-point memorandum of understanding that could end the conflict and establish a framework for nuclear negotiations.

Corporate Earnings:

Strong corporate results provided additional support. DoorDash (DASH) jumped 8% on robust second-quarter order guidance, while Fortinet (FTNT) surged 19% after raising its full-year billings outlook.

Economic Data:

Labor market data showed continued resilience. Initial jobless claims rose to 200,000 (below the 205,000 consensus), while continuing claims fell to 1.77 million—a two-year low. The data indicates a "low-hire, low-fire" environment persists despite layoff announcements from Meta Platforms and Nike.

Outlook:

Markets await April's jobs report, expected to show back-to-back monthly payroll gains for the first time in nearly a year. The near-term outlook remains tied to geopolitical developments and inflation trajectory, with confirmed US-Iran agreement potentially providing further market stabilization.