US stocks edge higher following the latest U-turn for oil prices
U.S. stocks rose slightly on Thursday as oil prices reversed course, dropping 2.3% after briefly spiking above $109 per barrel, easing pressure on bond yields and Wall Street. The S&P 500 gained 0.2%, the Dow Jones climbed 0.6%, and the Nasdaq rose 0.1%, while companies like Southwest Airlines and American Airlines surged due to lower fuel costs, though Nvidia and Walmart faced declines after mixed earnings reports.
U.S. stocks edged higher on Thursday after oil prices reversed a morning surge, dropping 2.3% to settle at $102.58 per barrel following a brief spike above $109. The S&P 500 rose 0.2% to 7,445.72, the Dow Jones Industrial Average climbed 0.6% to 50,285.66, and the Nasdaq gained 0.1% to 26,293.10. The volatility in oil prices stemmed from uncertainty over the Strait of Hormuz closure, which has disrupted global crude deliveries amid the Iran war. Lower oil prices eased pressure on bond yields, which had threatened to slow economic growth and increase borrowing costs. The 10-year Treasury yield fell to 4.55% after briefly nearing 4.63%, down from 4.67% the prior day. Stocks of fuel-dependent companies surged, with Southwest Airlines up 2.7% and American Airlines rising 4.9%. Meanwhile, Ralph Lauren jumped 13.9% after reporting stronger-than-expected quarterly profits, while Nvidia dropped 1.8% despite beating earnings estimates and forecasting robust AI-driven revenue growth. Analysts attributed Nvidia’s dip to profit-taking after its near 70% year-to-date gain. Walmart fell 7.3% after delivering strong revenue but weaker-than-expected profit forecasts, reflecting consumer caution amid high inflation. A flash survey from S&P Global showed U.S. service sector growth slowing slightly, though manufacturing activity outperformed expectations. The Russell 2000 index of small-cap stocks rose 0.9%, benefiting from lower borrowing costs.
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