Stock Markets May 7, 2026 04:31 PM

U.S. Stocks Slip as Oil & Gas, Materials and Industrials Weigh on Markets

Dow posts a steeper decline while mixed individual stock moves include large gains in cybersecurity and steep losses in select equities

By Priya Menon CRM IBM NVDA CAT JPM

U.S. equity benchmarks finished lower, led by losses in the Oil & Gas, Basic Materials and Industrials sectors. The Dow Jones Industrial Average fell 0.63%, the S&P 500 dropped 0.38% and the Nasdaq Composite edged down 0.13%. Session leaders and laggards were dispersed across sectors, with notable strength in select technology and cybersecurity names and sharp weakness in several small-cap and specialty issues.

U.S. Stocks Slip as Oil & Gas, Materials and Industrials Weigh on Markets
CRM IBM NVDA CAT JPM

Key Points

  • Major indices ended the session lower: Dow -0.63%, S&P 500 -0.38%, Nasdaq -0.13%.
  • Sector pressure came primarily from Oil & Gas, Basic Materials and Industrials, affecting larger-cap benchmarks.
  • Select technology and cybersecurity names outperformed sharply, while several small-cap stocks recorded extreme declines.

U.S. stocks closed lower on Thursday, as selling pressure in Oil & Gas, Basic Materials and Industrials pushed the major indexes into negative territory.

At the New York Stock Exchange close, the Dow Jones Industrial Average was down 0.63%. The S&P 500 retreated 0.38%, and the Nasdaq Composite declined 0.13%.


Large-cap movers

Among Dow components, Salesforce Inc (NYSE:CRM) finished as one of the session's top performers, rising 2.80% to close at 186.26. International Business Machines (NYSE:IBM) advanced 2.47% to 231.31, while NVIDIA Corporation (NASDAQ:NVDA) added 1.76% to settle at 211.50.

On the downside, Caterpillar Inc (NYSE:CAT) posted the largest decline within the Dow, falling 3.37% to 895.69. JPMorgan Chase & Co (NYSE:JPM) lost 2.74% to end at 306.27 and 3M Company (NYSE:MMM) slipped 1.90% to 143.75.


S&P 500 individual movers

The S&P 500 saw some outsized individual moves. Fortinet Inc (NASDAQ:FTNT) led gains on the benchmark, jumping 20.03% to 107.97. Axon Enterprise Inc (NASDAQ:AXON) climbed 10.60% to finish at 426.77, and Paycom (NYSE:PAYC) rose 9.55% to 138.43.

Conversely, Zoetis Inc (NYSE:ZTS) fell 21.50% to 87.31, Tapestry Inc (NYSE:TPR) declined 12.30% to 130.52 and FMC Corporation (NYSE:FMC) dropped 7.51% to 13.68.


Notable moves on the Nasdaq

The Nasdaq Composite's top performers included Atara Biotherapeutics Inc (NASDAQ:ATRA), which surged 92.82% to 9.93. Sobr Safe Inc (NASDAQ:SOBR) rallied 74.76% to 1.80, and Republic Power Group Ltd (NASDAQ:RPGL) gained 72.93% to close at 2.30.

At the opposite end, some smaller-cap listings experienced extreme drops. GD Culture Group Ltd (NASDAQ:GDC) plunged 87.93% to 0.15, enGene Holdings Inc (NASDAQ:ENGN) lost 80.57% to 1.72 and OneConstruction Group Ltd (NASDAQ:ONEG) declined 80.34% to 1.29 at the close.


Breadth and notable technicals

Declining issues outnumbered advancers on the NYSE by 1,725 to 1,000, with 94 stocks unchanged. On the Nasdaq, 1,991 issues fell and 1,386 advanced, while 172 finished unchanged.

Fortinet's shares reached 52-week highs during the session, closing up 20.03% at 107.97. Zoetis's shares fell to five-year lows, dropping 21.50% to 87.31. GD Culture Group and enGene Holdings each fell to all-time lows in late trade.


Volatility, commodities and currencies

The CBOE Volatility Index, which gauges implied volatility of S&P 500 options, was down 1.78% at 17.08.

In commodities, Gold Futures for June delivery rose 0.58% to 4,721.71 a troy ounce. Crude oil for June delivery increased 1.33% to 96.34 a barrel, and the July Brent contract rose 0.25% to 101.52 a barrel.

On the foreign exchange front, EUR/USD was essentially unchanged at 1.17, while USD/JPY gained 0.31% to 156.88. The US Dollar Index Futures ticked up 0.21% to 98.08.


Market context and concluding observations

The session was marked by divergent stock-level outcomes amid broader sector weakness. Industrials, materials and energy-related names weighed on the major averages even as select technology and cybersecurity issues posted strong gains. Market participants also registered moves in small-cap and micro-cap listings with exceptionally large percentage changes, both to the upside and downside.

Overall, the indexes closed lower with the Dow seeing the largest percentage drop among the three major benchmarks. The distribution of advancing and declining issues indicates wider weakness across exchanges, while volatility and commodity prices showed modest directional moves.

Risks

  • Concentrated losses in Industrials and materials could pressure industrials and supply-chain sensitive sectors.
  • Significant intraday declines in small-cap and micro-cap names highlight elevated idiosyncratic risk for those equity segments.
  • Widening breadth toward decliners across exchanges suggests potential for further near-term downside if selling persists.

More from Stock Markets

After-Hours Moves: Mixed Earnings Drive Volatility Across Cloud, Fintech, AI and Aerospace Names May 7, 2026 Barclays' Semiconductor Picks Center on AI Infrastructure and Data Center Demand May 7, 2026 IREN Shares Jump as Firm Secures NVIDIA Partnership and Moves into Spain May 7, 2026 Vernal Capital Raises $100 Million in NYSE IPO of Units May 7, 2026 Microchip Sees Q1 Revenue Ahead of Street on Strong Industrial, Auto and AI Chip Demand May 7, 2026