Oil prices climb back toward US$100, but U.S. stocks hang near their records

U.S. stock indices remained near all-time highs Wednesday despite minor declines, as the S&P 500 dropped 0.1%, the Dow Jones fell 304 points, and the Nasdaq stayed flat. Oil prices surged toward $100 per barrel, with Brent crude rising 1.4% to $97.37 and U.S. benchmark crude advancing $2.16 to $95.22, driven by U.S. military reports of Iranian missile strikes near Kuwait and Bahrain, which failed to hit targets. The market’s resilience stems from strong corporate earnings and optimism around artificial intelligence. Macy’s shares jumped 3% after exceeding first-quarter profit forecasts and raising its outlook for the fourth consecutive quarter, while GameStop surged 13.6% following a $2 billion stock buyback announcement and doubled profit expectations. Broader market gains have also been fueled by hopes of a U.S.-Iran deal to reopen the Strait of Hormuz, which could ease oil supply disruptions and lower prices. Oil prices rebounded after a two-week retreat, climbing 10% this week amid geopolitical tensions. The conflict risks further destabilizing global energy markets, though Asian markets showed mixed performance, with Japan’s Nikkei 225 hitting a record 68,402.13 and chipmakers Tokyo Electron and Advantest rising 13.4% and 5.1%, respectively. European indices fell, with Germany’s DAX down 1%, France’s CAC 40 off 0.4%, and Britain’s FTSE 100 down 0.3%. Hong Kong’s Hang Seng declined 1.6%, while Shanghai’s Composite index rose slightly by 0.2%. Australia’s S&P/ASX 200 advanced 0.7%, and Taiwan’s Taiex gained 2%, though India’s Sensex fell 0.9%. South Korea’s markets were closed for a holiday. The interplay of corporate strength, AI-driven growth, and geopolitical risks continues to shape global financial trends.